Categories: GST (Goods and Services Tax)

22 states scrap check posts for smooth GST rollout

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Q1.: What is GST in India ?

The Goods and Service Tax was announced by the Indian government on March 29, 2017 in order to integrate state economies and boost the country’s overall economic growth. The GST is an indirect tax that includes all other taxes, according to the law. This Act went into force on July 1, 2017, and since then, the GST has superseded all previous taxes. GST is a sales tax that is applied at every stage of the transaction.

Q2.: What Impact Will GST Have on India?

Businesses and consumers will benefit from GST because it eliminates the cascading effect of taxes and the economic obstacles that exist between states. For example, if a product has a 20% tax rate, this includes both federal and state government taxes. The vendor can manufacture in one state and sell to customers in other states without paying any taxes. Furthermore, consumers would only be liable to this indirect tax and not to any other taxes. GST assists the government in establishing a common market with standardised procedures, hence eliminating corruption.

Q3.: How does the GST system work In India?

GST is a value-added tax that is levied on the production, sale, and consumption of goods and services. GST is a unified taxation system that applies across the country.

Q4.: who was the first to introduce GST In India?

Government of Atal Bihari Vajpayee, In India, who was the one who enacted GST? On July 1, 2017, at 12 a.m., Prime Minister Narendra Modi announced the implementation of GST. However, the GST has been in the works for for two decades, when it was first mooted by the Atal Bihari Vajpayee government.

Q5.:What is three types of GST?

There is four types of GST in India are:

CGST (Central Goods and Services Tax)
IGST (Integrated Goods and Services Tax)
UGST (Union Territory Goods and Services Tax)
SGST (State Goods and Services Tax)

Q6.: who is responsible for paying the GST In India?

In most cases, the seller of goods or services is responsible for paying GST. However, in certain circumstances, such as imports and other registered supplies, the recipient may be held liable under the reverse charge system.
Any business with an annual turnover of Rs 40 lacs or a service with an annual turnover of Rs 20 lacs must register for GST and obtain a valid GST number. Keep in mind that the GST is applied to supplies rather than sales.
As a result, stock-taking, discounts, and freebies are all subject to GST. Regardless of sales, businesses selling to other states must register for GST.

Q7.: what are the key features of GST in India?

1.Dual tax structure: Every supply of goods and services is subject to a central and state tax, known as the Centre GST (CGST) and State GST (SGST), respectively.

2. Integrated GST (IGST) on inter-state supplies: Integrated GST (IGST) on inter-state supplies, with revenue divided between the Centre and the Consumption state.

3. Taxable supply between two establishments pertaining to the same legal entity: The goods supplied by the agent to the principal are taxable. Employer’s “gifts” to employees that exceed INR 50,000 are taxable.

4. Imports and exports: All imports are considered interstate supplies and are subject to the IGST. All exports are exempt from tariffs.

5. GST Taxation Administration : There is no internet tax system, but there are GST Facilitation Centres, GSPs, and ASPs that help taxpayers file returns, register, and so on.

Q8.: what are Taxes Covered, Not Covered and replaced by Government of India

The central government is in charge of collecting direct taxes. Indirect taxes were previously collected by the federal and state governments, as well as local governments. For example, state governments imposed entry taxes and VAT in addition to the Central government. Local Bodies imposed additional taxes such as Property Tax, Water Tax, Toll Tax, and so on.

A large number of indirect taxes were absorbed into GST for better enforcement, tax payment, and compliance. However, many of us believe that the introduction of GST in the country has rendered all previous levies obsolete. On the other hand, there are still some taxes that are levied separately.

Taxes Not Covered by GST

Petrol, ATF, Petroleum crude, Diesel & Natural Gas
Basic Custom Duty
Electricity Duty
Excise Duty on Alcohol
Property Tax & Stamp Duty

Notes : Even GST’s motto is “1 Nation 1 Tax”. Even though there are few taxes are not covered under GST as above.

Central Taxes Replaced by GST-

Excise duty levied under Medicinal & Toiletries Preparation Act
Additional duties of Excise levied under Textiles & Textile Products
Central Excise Duty
Additional duties of Customs( SAD & CVD)
Central Sales tax
Service Tax
Additional duties of excise
Surcharges and Cesses

At the state level below mentioned taxes have been replaced by GST-

Entertainment Tax(Other than those levied by local bodies)
Taxes on advertisements
Luxury Tax
State VAT/Sales Tax
Taxes on lottery, betting & gambling
Surcharges & Cesses
Central Sales Tax
Purchase Tax
Entry Tax(All Forms)

22 states scrap check posts for smooth GST rollout

The rollout of the Goods & Services Tax across the country has been smooth with 22 states, including West Bengal and Delhi, abolishing check posts, adding to the efforts to ensure that the changeover to the new tax regime is hassle-free and least disruptive for businesses and consumers.
Eight states are on the verge of scrapping the check posts, which is expected to ensure smooth flow of goods across the country.
The removal of check posts will come as a huge relief for trucks which queue up for hours to get their consignments and papers checked, causing delays and adding to costs.
A session of the assembly of J&K, which is yet to enact the law+ for the implementation of GST, has been convened on Tuesday to consider approving the legislation.
Sources in the finance ministry said that there has been no inflationary impact of the new tax regime: an assertion which was significantly endorsed by the CPM-led government in Kerala.

The LDF government issued a statement in Thiruvananthapuram saying prices of more than 100 products have been brought down under GST.
State finance minister T M Thomas Isaac came out with the list of products to counter widespread complaints that there was no positive impact of GST in the state.
Keen to ensure that the momentum is maintained, authorities are also keeping a close watch to ensure that any roadblock is removed swiftly.
Cabinet secretary P K Sinha reviewed the post-GST implementation situation with the secretaries and senior officials of different ministries and departments.
The cabinet secretary urged every secretary to take up the responsibility of addressing GST-related issues of their respective stakeholders, trade and industry.
He asked them to coordinate with state government officials to ensure smooth implementation of the tax measure.
Sinha also asked all departments to ensure that there is no shortage of products and commodities especially consumer items in order to keep the prices under check.
The cabinet secretary also urged officials to ensure that retailers, dealers and shopkeepers display the post-GST prices of different items being sold by them.
He said each department and ministry should make sure that benefits of GST are passed on to consumers which would help keep inflation under control.
Sinha asked all departments to ensure that that various machines used by dealers and retailers for computerised billing are calibrated at the earliest to reflect the GST rates.
He said this exercise should be completed in a time- bound manner without delay.

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Tags: flow of goods across the countryGST rolloutimpact of the new tax regimepost-GST prices

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