Hello everyone coming with another article on GST, a very hot topic in discussion now a days , here is a gist of GST with meaning of some important terms which will help readers to understand the definitions properly and help practising chartered accountants to deal their clients efficiently in the matter of GST
You all must have heard so many information on the Goods and Services Tax. Some are saying GST will take away the ‘cascading impact’ of taxes and some are saying GST is ‘one nation, one rate’.
Firstly GST will not reduce the amount of tax you pay, but it will make it less tiresome to pay and collect. GST is about fewer taxes, at unified rate, as we all know that the taxes are levied both by central and state government in indirect taxes in different level like vat , service tax, excise duty etc, what GST will do is to sweep (‘subsume’) many indirect taxes into a single label.
As things stand, the Centre has agreed to sweep excise duty and additional excise duty, service tax, countervailing duty, surcharge and cess and central sales tax into the waiting arms of GST. The States have obligingly agreed to give up VAT (sales tax), entertainment tax, luxury tax, taxes on gambling, octroi and entry taxes, cess and purchase tax. GST will thus replace all of these taxes.
When goods are shipped from one State to another, then it is called inter state , the Centre will collect an integrated GST retained its part of share and give state part of share to state government like if goods are moved from Uttar Pradesh to Haryana then it is called inter state, centre will collect GST and give state share to Haryana govt, When the goods are moved within a state then it is called intra state like from Uttar Pradesh to Uttar Pradesh then Central GST and State GST will be levied.
As we all know currently we are working on ‘value added’ tax regime where taxes paid on inputs are deducted from taxes due on final product, but this exists in name only because so many taxes like central sales tax, additional excise and customs duty, luxury tax, to name a few — are not eligible for such set-offs, As a result, both producers and sellers end up paying taxes on the same inputs over and over again.
It should be thanks that in case of GST there is no concept of input tax credit all taxes are summed up and GST is you pay just once for.
Now here is the meaning of some basic terms in GST like What does the word GOODS means in GST
Goods means all kinds of movable properties (which can be moved as such without any dismantling) (only tangible) eg:- visualize, marker, exercise machine, fan etc
INCLUDING securities, growing crops & grass, things attached to or forming art of the land e.g. electricity pole etc
EXCLUDING money, Actionable claim
What does the word SERVICES means in GST
ANYTHING OTHER THAN GOODS i.e. Do something or not to do something (like non competence contract, cancellation charges of hotel/ aircraft etc.)
INCLUDING intangible property (which cannot be touched like copyright, patent etc)
What does the word SUPPLY means in supply of goods/ services
If supply is for a consideration–
In GST even if NO CONSIDERATION is there then also supply exists like-
Some clarification regarding supply of Goods v/s supply of services
In case of Movable Property (Goods)
In case of business assets
In case of Immovable Property
In case of Intangible Property (IPR)
In case of software
Goods on which 100% Exemption is there in GST
ROTI :- flour, pulse, rice, milk, cereals, poultry etc
MAKAN:- renting for residential/ construction for one family
SHIKSHA:- playway to XII- approved degree, diploma
SWASTHYA:- health care- diagnose, treatment , care etc
So here are some of the provisions of GST… to be continued with some other and very important concepts of GST till then enjoy and keep smiling!!!!
Thanking you all
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