Are you prepared for GST? No? Get answer to your basic questions here!

  • Are you prepared for GST? No? Get answer to your basic questions here!

    Summary:

    GST is to be implemented from June 30th midnight. Are you ready for it? Know your basic queries here in case you missed it before.

    By now your news feeds would have been brimming up with GST. All set to be implemented from June 30th midnight, it has made its murmurs in every corner. But are you among those many who couldn’t catch up to the basics? Well, you don’t have to be ashamed. Your problem is solved. NYOOOZ is here with answers to your basic questions.

    What is GST?

    Starting with the acronym, GST stands for Goods and Services Tax. Up till now, India has multiple indirect taxes system. With GST it will be replaced by a single indirect system from manufacturer to the customer.

    How will GST impact the taxes?

    By ending multiple taxations at different levels, the whole country will have one tax for particular goods and service. It will be demarcated into centre and state. For instance, if you have to buy a vehicle from a state you are rescinding in, you’ll have to pay the state tax, followed by Excise Duty, followed by sales tax. With GST all these taxes will be cut off and a single GST tax will be payable.

    Which State and Central Taxes are listed under GST?

    Following taxes will be included under GST

    --VAT/Sales tax

    --Entertainment tax (unless it is levied by the local bodies)

    --Luxury tax

    --Taxes on lottery, betting and gambling

    --State Cesses and Surcharges in so far as they relate to supply of goods and services

    --Entry tax not in lieu of Octroi

    Will purchase tax be included in GST?

    Currently, it is unsure if purchase tax will be included or not because the states suggested that they would fail to generate substantial revenue that used to come from it. Though it was decided that subsequent tax would be compensated to the states.

    What are the benefits of GST?

    For customers: By GST the supply of items will not be hindered by the state boundaries and extra state taxes. The items will be taxed according to their placement in the categories they belong to. By reducing the tax burden on the customers the goods will ultimately be available at lower price.

    For nation: it is predicted that by following GST it may contribute to the growth of GDP by 1.5% in the longer run.

    On which items GST will not have an effect?

    The items like Crude oil, diesel, petrol, natural gas and jet fuel are not under GST, they will be taxed according to the old taxation system.

    How will the GST council function?

    To pass any decision, the council needs 75% votes from centre and states. Though the centre votes will have one-third weightage, the states will make up the other two third.

    In a case of disputes between the centre and states or among states, the council will have the final say.

    What are your views about GST or do you have more questions regarding this? Connect with NYOOOZ.

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