What is GST Bill ? Important GST Notes for Exams, Tax & Benefit, News Updates

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gst notes for exams GST Bill GST Notes GST Full Form GST, Benefits, Tax Rate, CGST, SGST Notes pdf Important Points related to GST asked in Exam How GST Work

GST- All Details, Tax & Benefits -gst notes for exams

gst notes for exams

gst notes for exams

What is GST : GST is Goods & Service Tax. GST is implemented by Government under Tag One Country, One Tax & One Market. “GST is one indirect tax for the whole nation, which will make India one unified common market”.

How GST will Work :

  1. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.
  2. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.
  3. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Benefits of GST : Important Benefits of GST for Business & Industry, Central & State Government and Consumers are as Follows :

For Business & Industry :

  1. Easy Compliance as all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online.
  2. Uniformity of tax rates and structures. GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.
  3. GST will reduce hidden cost of Doing Business by removal of cascading.
  4. Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.
  5. This will increase the competitiveness of Indian goods and services in the international market and give boost
  6. to Indian exports.

For Central and State Governments :

  1. Multiple indirect taxes at the Central and State levels are being replaced by GST. GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.
  2. Better controls on leakage as GST will result in better tax compliance due to a robust IT infrastructure.
  3. Higher revenue efficiency : GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.
For the consumer :
  1. Single and transparent tax proportionate to the value of goods and services.
  2. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.
  3. Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.

Taxes Subsumed Due to GST : Following Taxes on Central & State Level will be abolished :

Central Level :

  1. Central Excise Duty
  2. Additional Excise Duty
  3. Service Tax
  4. Additional Customs Duty commonly known as Countervailing Duty
  5. Special Additional Duty of Customs.

State Level :

  1. Subsuming of State Value Added Tax/ Sales Tax.
  2. Entertainment Tax (other than the tax levied by the local bodies)
  3. Central Sales Tax (levied by the Centre and collected by the States)
  4. Octroi and Entry tax
  5. Purchase Tax
  6. Luxury tax
  7. Taxes on lottery, betting and gambling

IMPORTANT NOTE : Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise.

To Get More Details Regarding GST : Click Here

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