GST or as also known as Goods and Services Tax is an indirect tax that has substituted many federal and state taxes such as sales tax, VAT, and excise duty. It is a unified maximum tax imposed on all services and goods manufactured in India and imported from many nations.
In 2017, India launched the dual GST regime [Central Goods and Services Tax (CGST) and a State Goods and Services Tax (SGST)] to eliminate burdensome regulations and raise tax collections, which will in effect contribute to economic growth.
More About Goods And Services Tax
As mentioned earlier the Goods and Services Tax (GST) was implemented in the year 2017 and its implementation has brought a lot of changes in the tax structure of our country. For one, an individual will not have to pay a number of taxes as all the indirect taxes have been absorbed into the GST, and tax liabilities are comparatively less.
The Indian government charges the GST in slabs (rates). The current GST rates are 5%, 12%, 18% and 28% respectively. The Council of Goods and Services Tax administers GST and is regulated by the GST Act, 2017.
Gst is charged on all kinds of products and services, with the exception of petroleum, electricity, and liquors, upon which the taxes are collected by the state authorities. It is separated into two sections: the Central Goods and Services Tax (CGST) charged by the Central Govt and the State Goods and Services Tax (SGST) charged by State Govt. Both Central and the State governments have an equivalent share in the GST. For instance, if an item is taxed 5 percent GST then the SGST (2.5 percent) and CGST (2.5 percent) will be equivalent. There is also another form of GST tax levied, it is referred to as the Integrated Goods and Services Tax (IGST) payable on inter-state provided goods and services.
The legislation was imposed in order to eliminate the cascading effect of double taxation on the circumstance of obtaining multiple taxes at each and every stage of production. It is also executed under the GST, but the company is refunded back at different stages. It is a destination-based tax, imposed by the government where the said goods or services are consumed, as opposed to charging it in the state in which the goods or services were manufactured.
Latest News And Updates
April 8th, 2020
Currently awaiting, GST and Custom refunds shall be made available on an early basis. The news was announced on Wednesday by the authorities. This judgment will lead to a significant increase of about 14 Lakh tax-paying citizens and about 1 lakh business organizations (as well as MSMEs). The overall reimbursement offered by the authorities will be close to Rs. 18,000 crores.
April 13th, 2020
The Ministry of Finance issued a notification on the verification of many problems faced by registered persons in the full implementation of the GST Laws-reg. This can be downloaded and viewed via the CBIC website, the official circular number is 137/07/2020 of the CBIC Department.
April 28th, 2020
The provisions of this section shall have the impact of Rule 87(13) and Form GST PMT-09 of the CGST Rules of 2017. This can be downloaded and viewed via the CBIC website, the official notification no. 37/2020 of the CBIC Department. Also, they released a statement for trade facilitation measures during the current global pandemic caused by the outbreak of Covid-19.
May 6th, 2020
The due date to submit the GSTR-9 annual & GSTR-9C audit reconciliation form has been extended till 30th September 2020 for the previous financial year of 2018-19.
The validity of the E-Way Bill issued before or on the 24th of March 2020 has been prolonged until the 31st of May, 2020.
Businesses organizations now have the option of using EVC mode, which is option of filing GSTR-3B(April 21st, 2020 – June 30th, 2020)
May 16th, 2020
CBIC stated, “CBIC is committed to ensuring Liquidity to GST Taxpayers especially MSME Sectors during Lockdown.”. With this statement, they also have sanctioned the GST refund claims amounting to 11,052 crores.
May 26th, 2020
CBIC stated “Special Refund & Drawback Disposal Drive to benefit MSMEs/Exporters during COVID19. 6.76 lakh IGST/Drawback/Refund claims amounting to Rs.8656 crore disposed off.”
For the latest GST news and updates, you can always visit the official GST website or the CBIC website.