What is GST?
GST stands for Goods and Services Tax is an indirect tax (or consumption tax) imposed in India on the supply of goods and services except taxes on the supply of the alcoholic liquor for human consumption
History of GST
| Year | Progress |
| 2000 | Prime Minister introduced the concept of GST and set up a committee to design a GST model for the country |
| 2006 | Announcement by Union Finance Minister, during budget of 2006-07 that GST would be introduced from 1 April 2010 |
| 2009 | First Discussion Paper was released by the Empowered Committee |
| 2011 | Constitution (115th Amendment) Bill introduced and subsequently lapsed |
| 2014 | The Constitution (122nd Amendment) Bill was introduced in the Lok Sabha |
| Aug 2016 | The Constitution (One Hundred and First Amendment) Act was enacted |
| Sep 2016 | 1st GST Council Meeting |
| March 2017 | GST Council Recommends the CGST, SGST, IGST, UTGST and Compensation Cess Act |
| April 2017 | CGST, IGST, UTGST and Compensation Cess Acts passed |
| May 2017 | GST Council recommends all the rules |
| 30th June 2017 | All States except J&K passed their SGST ACT |
| 1st July 2017 | GST Launched |
| 8th July 2017 | SGST Act passed by J&K; CGST and IGST Ordinances promulgated to extend GST to J&K |
| 01st February,2019 | Amendments to CGST, IGST,UTGST and Compensation to State Acts enacted |
| Journey Continues…. | Notifying and amending rulesDealing with IT related issuesRevision of RatesClarification and communication with taxpayers |
Types of GST slabs under GST
The Tax slabs are as follows:
- 5%:Household necessities such as edible oil, sugar, spices, frozen vegetables, branded wheat and rice ,branded flour, cotton and its fabrics ,etc
- 12%: Butter, Cheese, mobile phones, computers, Ayurveda products, etc.
- 18%:Hair oil, toothpaste and soaps, capital goods and industrial
intermediaries - 28%: Luxury items such as cars, consumer durable like AC and Refrigerators, cigarettes and aerated drinks, High-end motorcycles, etc.
Features:-
- Comprehensive: As it contains almost all the indirect taxes except few.
- Multi-Staged: As it is imposed at every stage in the production process, which is meant to be refunded to all parties/producers in the various stages of production except the final consumer.
Destination based tax: As it is collected from where the product is consumed and not where it is originating from.
Why should you register for GST Registration?
Trade/Industry:
(i) Reduction of cascading/double taxation
(ii) More efficient neutralization of taxes especially for exports
(iii) Development of common national market
(iv)Simpler tax regime-fewer rates and exemptions
Citizens:
(i) Uniform prices throughout the country
(ii) Reduction in prices of goods and services due to elimination of cascading
(iii) Simpler tax system
(iv)Transparency in taxation system
Who should register for GST?
| GST Registration | Turnover | Exceptions |
| Mandatory for Suppliers of services | Exceeds Rs.20 lakhs | Rs.10 lakhs in case of States of Manipur, Mizoram, Nagaland and Tripura). |
| Mandatory for suppliers of goods | Exceeds Rs.40 lakhs | Rs.20 lakhs in case of States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand) |
The following classes of taxpayers shall be exempted from obtaining GST registration:
| Exemption from GST Registration | Turnover | Exceptions |
| Suppliers of services | Turnover up to Rs. 20 lakh | Making inter-State supplies. |
| Making supplies through e-commerce platforms. |
Additional Information:-
- In case there are multiple places of business
- Located within the same State/Union territory, taxpayers may opt for single registration with addresses of businesses linked with the same GST number.
- Located outside the same State/Union territory, taxpayers may opt for multiple GST registration Online
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