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How Does GST Work?
Let us look at the three cases below to understand how GST would work in India. (CGST stands for Central Goods and Services Tax, SGST stands for State Goods and Services Tax, IGST stands for Integrated Goods and Services Tax) Illustration 1: Sale and resale in the same state Let us say goods are moving from …
Who is liable to pay GST ?
GST is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption, i.e. aggregate turnover of Rs.20 lakhs (Rs. 10 lakhs for North East States) except in certain specified cases where the taxable person is liable to pay GST even …
Benefits of GST
No Tax on Tax – There will be no cascading effect on taxes. For eg VAT was charged on base price + excise duty. Now both CGST and SGST will be levied on base price. Reduction in prices – Due to full and seamless input credit, manufacturers or traders don’t have to include taxes as …
Which of the taxes are to be replaced by GST?
Taxes currently levied and collected by the Centre: Central Excise duty Duties of Excise (Medicinal and Toilet Preparations) Additional Duties of Excise (Goods of Special Importance) Additional Duties of Excise (Textiles and Textile Products) Additional Duties of Customs (commonly known as CVD) Special Additional Duty of Customs (SAD) Service Tax Central Surcharges and Cesses so …