(GST) What is GST? Object and Service Tax: Understand Easy Language – GST

(GST) What is GST? Object and Service Tax: Understand Easy Language - GST

The GST is a small word to say, but the future of India is hidden behind it.

There was a deeper consideration of this subject in India for many years. After all, GST has been implemented in India.

This is a type of rule that all the businessmen will have to accept after a limit.

WHEN DID GST COME INTO INDIA? – GST 

GST has been implemented in India from 01 July 2017.

The GST has improved considerably since the implementation.

First of all, all the businessmen had to face difficulties due to different taxes. But after consulting the merchants, it was found that after capturing the note they had to face a lot of problems. But those people are happy with GST coming.

After any major changes, people have to face problems.

With the arrival of GST, there has been a very significant amendment in India. It is expected that GST will be successful.

GST is not a small topic, so I will give you as much information as I can about it. So go ahead and know what is GST?

WHAT HAPPENS TO GST – INFORMATION ABOUT GST 

There is no small thing to do GST or service and service. It is a very big concept. This is a multilevel destination-based tax.

To understand the GST, we have to understand the multi-level word. Anything commits from creation to final consumption.

After moving from here, a tax is imposed by the people on their own margin. like :

  1. A first raw material is purchased.
  2. It is produced or manufactured.
  3. Then its packaging is done according to the atmosphere.

The goods are then taxed by the use of the general public in the storage of that material or in the warehouse, but the government determines the value of its tax. You can not value the tax on your own.

COMPLETE INFORMATION OF GST  – WHAT IS GST 

Value added tax which was used in India, but now it has replaced GST.

Suppose a manufacturer sells clothes according to men and women. Now she needs a needle thread to make clothes.

When it is woven in a shirt, the value of the thread increases. Then, the manufacturer sells it to the warehousing agent, which adds labels and tags to each shirt, packaging it, then it becomes another culture of value.

After this warehouse sells to the retailer who packs each shirt separately and invests in the marketing of shirts.

Thus investing increases the value of each shirt.

One sentence in all sentences was also written destination-based.

In each step of making a shirt, GST takes place on all transactions occurring during its manufacturing line.

No GST will be required at each level. For example, the process of the complete production of any product is happening in Delhi and the final sale in Gujarat is being done because GST is installed at the time of consumption, so Delhi will get revenues in the production and warehousing stages.

But when the product goes out of Delhi and is reached to the final consumer in Gujarat then Rajasthan will not get revenue.

This means that Gujarat will earn revenues on final sale as it is a destination-based tax and it will be collected at the last destination of revenue sales which is Gujarat.

HOW GST WILL WORK? – HOW GST WORKS WITH EXAMPLE

The Government took this step with a very thoughtful thought behind implementing GST.

Countrywide tax reform can not work without strict rules and regulations. GST Council has divided this new tax system into three categories and implemented it in whole of India.

GST specialist has divided GST into three categories.

  1. CGST: Under this Central Government will collect revenue.
  2. SGST: Under this, the state government will collect revenue.
  3. IGST: Under this, revenue will be collected by the government for interstate sales.

In most cases, the tax structure under the new regime will be as follows:

Transactions in GST will be like this

  1. Sale within the state: CGST + will be SGST
  2. Sale to the second state: IGST will be sent from one state to another to send the product.

Like: Shanu hired a shop to sell his glasses and has his shop in Delhi.

If Shane sells the goggles only in Delhi, then only it (CGST + SGST) will have to be installed.

Suppose Shanu’s cost of glasses is 500, then it is 12 percent, then it will apply CGST 6% and SGST 6%.

But if Shaun sends glasses from Delhi to Uttar Pradesh (in any state except Delhi, because he is working from Delhi) he will have to install IGST. Then IGST will take 12 %.

WHO WILL NEED GST REGISTRATION?

GST has been applied to all types of business. But in some cases, GST will not be applicable.

Occupations include »business, commerce, construction, profession, business or any other similar proceeding, despite its expanse or probability.

This includes the supply of goods/services to start or stop business.

Taxes the goods on the tax and send it forward.

Meaning of services: Services such as a Doctor, Lawyer, CA, Consulting companies, etc. In the work that continues to be operated without any product, you are giving money but you are not taking any of it, You are doing it, you are giving him money to get your own done.

All types of services have the same rate. All those GST will be priced at the same rate.

WHAT WILL GST APPLY TO? – PROFIT AND LOSS OF GST

Individuals include »Individuals, HUF (Hindu Undivided Family), Company, Firm, LLP (Limited Liability Partnership), AOP, Co-operative Society, Trust etc. Just GST will not be applicable to farmer experts.

Agriculture includes the production of flowers, horticulture, silk production, crops, grass or garden. But dairy farming is not included in poultry, stock reproduction (animal husbandry), fruit or marble or plant adherence.

WHEN WILL GST REGISTRATION BE REQUIRED? – GST INFORMATION 

First, a PAN card is required to get GST. Without the PAN card, the GST number will not be available.

A nonresident person (who is not of India but wants to do business in India) can get GST registration on the basis of other documents mandated by the government.

GST registration will be required for each state. Taxpayers can get separate registrations for their different business verticals (business vertical) in the state.

A businessman can take GST in states other than one state to increase his work.

Just take a number of GST numbers, just keep an eye on their month’s return. From time to time, you will have to file your returns or you will have to pay a late fee.

GST REGISTRATION IS MANDATORY IN THE FOLLOWING CASES – HOW SHOULD THE BUSINESS BE?

You do not have to take GST in your business till the limit of at least 40 lakhs, but you can take it.

A trader with a limit of 40 lakh is required to take GST.

Those above 40 lakh will have to collect GST and make the earthquake.

“Total turnover” means to make all-the-cost supply, a supply of freedoms, the export of goods and/or services and the inter-state supply of a person with a pan, on all India basis and to include taxes ( If any) will be payable under CGS Act, SGST Act, and IGST Act.

This means that if the CGST will have tax then the central government will go. SGST will go to the state government. In IGST, a tax will be done only in the central.

REGISTRATION OF GST IS MANDATORY IN THE FOLLOWING CASES – GST 

Merchants supplying inter-state of goods/services.

Any person who supplies goods/services in a taxable area and does not have a certain place of business – which is referred to as casual taxable persons. Registration issued to such person is valid for a period of 90 days.

  1. Any person who supplies goods/services and there is no fixed location of a business in India – which is called the non-resident taxable person. Registration issued to such person is valid for a period of 90 days.
  2. The person paying the tax under the reverse charge mechanism. A reverse charge mechanism means that where the person receiving the goods/services have to pay a tax instead of the supplier.
  3. Agent or any other person who supplies on behalf of other registered people.
  4. Distributor or Input Service Distributor: This person has the same pan as the supplier’s office. This person is an officer of the supplier, he receives supplies and tax invoices to distribute the CGST / SGST / IGST loans.
  5. E-commerce operator (e-business): On its GST portals, different options are given in the name of e-commerce, which will have to pay attention at the time of registration.
  6. The person supplied through e-commerce operator (excluding branded services)
  7. Aggregator which provides services under its brand name.
  8. In India, the person who supplies online information and database access or recovery services (except for a registered person) from one place outside India
PENALTIES FOR NOT BEING REGISTERED UNDER GST – GST RULES

Any offender who is not paying taxes or pays less, he will be fined 10% of the tax amount (of which 10,000 is the minimum amount). Where a conceptual evasion was seen, the penalty should be paid 100% of the amount due to the payer.

However, for other actual errors, the fine is 10% of tax.

To get GST number you can apply directly by visiting GST portal but those who do not have much knowledge about GST can take GST number through a CA, Advocate, Accountant.

You can call this number to get the GST number. => Phone: 9871093411 Email ID: shanugupta0951@gmail.com

Documents required for GST.

  1. Pan Card
  2. Aadhar Card
  3. Electricity bill/rent agreement/proof of being a landlord
  4. Having an account in the bank. (This is not mandatory, you can open a current account by taking a GST number)
  5. Photographs by which to get GST number.

Friends, I hope you have got as much information about GST as possible.

This article in GST  now ends on this. If you have to ask something related to it then you can ask through the comment.

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