GST in India- The Basic Study

• Admin
• June 8, 2021, 8:02 a.m.

Goods and Service tax is applicable in India from 1st July 2017. GST system contains three types of GST- Central GST (CGST), State GST (SGST), and Integrated GST (IGST). CGST and SGST are applicable in inner state, when movement of goods within the state. Whereas, IGST is applicable on intra-sales state (sales out of the state). But the GST India tax is same both the cases.

Business who are liable to apply for GST registration in India:

• The business entity which are required to do GST registration is provided in GST Act. To every person whose sales is more than Rs. 40 lakh at the end of the year are liable to pay GST.

• In case of special category states, every person engaged in providing a taxable goods and services or both are required to do GST registration in case the annual gross is more than 20 Lakh.

• Every person who are registered under the erstwhile law, on the day immediately preceding the appointment date, is liable to do GST registration in India.

• Every casual taxation person have to do GST registration.

• Every person who is supplying information online from India to other country, have to do GST registration.

• The registered taxable person when transfer business to another person on going concern basis, in such cases transferee or  successor have to do GST registration in India.

• Every person who transport the good and services, or other branded services through e-commerce operator has to file GST registration.

• Every person who is engaged in agriculture activity has not to file GST registration in India.

• Input service distributor can apply for GST registration.

• A person would be liable to apply for GST registration in India whose gross income is more than 20 Lakh financial year.

• A person would be eligible for GST registration who deduct the tax under section 37.

How to calculate GST?

To procedure of calculating GST is very simple. All you need is to do just multiplying the taxable amount by GST rate.

On the off chance that CGST and SGST/UTGST is to be connected then CGST and SGST the two sums are half of the complete GST sum.

GST = Taxable Amount x GST Rate

On the off chance that you have the sum which is as of now including the GST, at that point you can ascertain the GST barring sum by bellow formula.

• GST barring sum = GST including sum/(1+ GST rate/100)
• For instance, GST including sum is Rs. 525 and GST rate is 5%.
• GST barring sum = 525/(1+5/100) = 525/1.05 = 500
• GST is determined on the exchange sum and not on the MRP.

In this way you can calculate the GST hassle free. Still, if you feel difficulty in calculating GST and payment, you can take the help of the Unilex consultants. Here professionals will help you regarding GST registration in India and claim. Whatsoever is you are facing issue with GST, get in touch with Unilex consultants professionals.

Calculation of GST amount payable to government:

A GST registered person need to pay the difference of GST on sales and GST on purchase made in month. The capital goods are those goods which you had not purchase for reselling.  For example furniture for your shop and furniture for production.

GST Rates:

Most of the goods fall into 5%, 12% and 18% categories. GST of 28% is apply on items like tobacco, car, cement, and pan masala. GST rates are not applicable on agriculture items.

Advantages of GST Registration:

• GST is a comprehensive indirect tax that designed to cut the multiple taxes on goods and services. All the taxes are covered in one umbrella.
• GST tax improves the mechanism of paying taxes.
• Under the GST registration, the threshold has been increased to Rs. 20 lakh, which give a great sigh of relief to small business entities.
• Right from the applying for the GST registration in India or claiming for GST payment, all process people can do online.
• GST regime improves the efficiency of logistics. Earlier logistics industry in India had to maintain multiple warehouse across state to avoid current GST and state entry taxes. Under GST , these restriction has been diminished. Hence, reduction in unnecessary logistics taxes is already the profits of businesses.
• In pre-GST era, it was often observed many industry are doing business unauthorised and unregulated. After launching GST tax these things are permanently diminishes. Every business is organize and regulated.

What is the GST system according to the new law?

GST is relied upon to supplant a bunch of roundabout charges, for example, VAT, traditions obligation, Excise, CST, Service Tax, Entertainment Tax with a solitary expense called the Goods and Services Tax.

Extensively there will be 2 types of GST in India.

At the intra-state level (when merchandise travel inside a state) and at the between state level (when products travel between states).

At the intra-state level two sorts of GST will be required CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax).

At the between state level IGST (Or Integrated Goods and Services Tax) will be imposed.

Imports will be considered as between state supply.

Fares will be zero evaluated.

Supplies to SEZ will be Zero-evaluated

Disadvantages of GST registration:

• GST taxes is very complicate to understand.
• People who have lack computer knowledge unable to file GST by themselves.
• High taxation burden.