What is GST and for whom?
GST is the indirect tax levied on goods and services. (Goods and Service TAX) before VAT,
Customs Duty Central Excise Duty, Service tax etc. There were 17 types of indirect taxes,
The GST system has been introduced all together, from 1st July 2017. On the production and supply of any thing As a result of each state’s separate tax system, To stop the adverse effects on the Indian economy And the GST system was introduced to simplify the complex tax system. Now the question is who should pay GST. Anyone who transacts Rs 20 lakh or more annually has to pay GST to the state concerned, In case of transactions with other states, GST will be levied (Whether it is less than 20 lakhs or more) GST will also be levied on online shopping.
Types of GST:
There are three types of TAX –
1) Central or Central GST or CGST
2) State GST or SGST
3) Combined tax or integrated GST or IGST
Let’s take a look at the GST Council, What is the percentage of GST levied on any item GST is divided into five slabs: 0%, 5%, 12%, 16% and 26% of the first slab contains non-GST items, Such as milk and dairy products (which were not packaged), fish, meat, fruits etc.
5% GST includes all packaged foods, Tea, coffee, spices, cashews, raisins, walnuts, etc.
Most of the essentials are limited to 12% GST but luxury goods, entertainment etc. In case 18% GST has been kept.
Drugs, carbonated drinks, marble granite, cement etc. 26% GST. Petrol, alcohol and electricity are excluded from GST. Due to this there is a difference in the price of these in different states. Gold is also subject to 3% GST.
Taxes are a major source of government revenue. The central government collects taxes from consumers through GST And is equally distributed among the state governments, Transparency has come in the overall economic system. Taxes are not taxed as before, Consumers also have to pay less tax than before.