What Are The 3 Types Of GST?

In which country GST was first introduced?

FranceFrance was the first country to implement the GST in 1954; since then, an estimated 160 countries have adopted this tax system in some form or another..

Who is the father of GST?

Who introduced GST in India? Prime Minister Narendra Modi launched GST into operation on the midnight of 1 July 2017. But GST was almost two decades in the making since the concept was first proposed under the Atal Bihari Vajpayee government.

How does the GST work?

GST is charged on the value or selling price of the products. The amount of GST incurred on input (input tax) can be deducted from the amount of GST charged (output tax) by the registered person. … However, if the input tax is more than the output tax, the difference will be refunded by the Government.

What is GST for beginners?

Goods and Services Tax (GST) is one of the greatest tax reforms brought about in the indirect tax structure of India. The previous indirect tax system comprised of separate Centre and State laws. Such a tax structure not only increased the cost of goods but also made the taxation system more complex.

How is GST calculated?

GST calculation can be explained by simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs.

What is difference between IGST and Cgst?

CGST and IGST are part of GST, Goods and Service Tax. CGST expands as Central Goods and Service Tax and IGST is the short form of Integrated Goods and Service Tax. … Under IGST, the taxes for movement of goods and services from one state to another are collected.

What is IGST example?

IGST is a part of Goods and Service Tax (GST). IGST means Integrated Goods and Service Tax, one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. … For example, if goods are moved from Tamil Nadu to Kerala, IGST is levied on such goods.

How many types of GST are taxed?

In India, nearly all goods and services under the purview of GST have been divided into four GST rates – 5%, 12%, 18%, and 28%. The GST council revises inclusions under these rates from time to time in order to ensure efficient pricing of different categories of products.

What is current GST rate?

GST on Loans and Advances The rate of Service Tax was 15% whereas the rate of GST is 18%.

What is IGST CGST and SGST with example?

Note: Any tax liability obtained under SGST can be set off against SGST or IGST input tax credit only. An example for CGST and SGST: Let’s suppose Rajesh is a dealer in Maharashtra who sold goods to Anand in Maharashtra worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%.

What is CGST and SGST?

CGST is a tax charged on intrastate supply of goods and services by the central government and is governed by the CGST Act, 2017. And, SGST is a tax component applied to the same intrastate supplies by the state government.

How many parts of GST are there?

Goods and services are divided into five different tax slabs for collection of tax – 0%, 5%, 12%, 18% and 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.

Is GST good or bad?

The Good, The Bad The major advantage is that it compels all businesses to come under the ambit of this reform. The unified tax system and easy input credit avoid cascading effect of all the taxes. Since this tax system is applicable all over the country, it removes the barriers of interstate movement of goods.

What is set off in GST?

The GST portal allows taxpayers to manually set off the input tax credit against the output liabilities. … The easiest way to accomplish this is after using the IGST credits for the IGST liability, the balance available in IGST credits to be equally utilised for CGST/SGST credits.

What are the GST rules?

GST Invoice Rules and GuidelinesDO’sDON’tsEnsure all documents have your GSTIN and the client’s or supplier’s GSTIN where applicableDon’t charge tax as GST, make sure you split it correctly in between CGST and SGST or IGST.Do submit GST reports on time4 more rows

What is the GST percentage?

The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18% and 28% under GST. This is aside the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25% under GST. 7% goods and services fall under this category.

Will GST on phones decrease?

Mobile phones will attract an 18% goods and services tax (GST) rate from April 1, 2020, up from existing 12%, after the GST Council corrected the inverted duty structure that was being faced by the industry. … “Mobile phones and specified parts to attract 18% versus 12%.

What are the types of GST?

There are four different types of GST as listed below:The Central Goods and Services Tax (CGST)The State Goods and Services Tax (SGST)The Union Territory Goods and Services Tax (UTGST)The Integrated Goods and Services Tax (IGST)