[wp_ad_camp_1]
GST full form is Goods and Services Tax in India. GST applies throughout India and is indirect tax. Moreover from now on GST replaces many taxes. Generally State and Central Governments levy taxes. But after many meetings, Finance Minister of India and Indian Government introduced GST on July 1st 2017. Government of India introduced Goods and Services Tax as The Constitution Act 2017.
Understand GST in India
GST Council and Finance Minister of India govern GST and its laws. Further Finance Minister of India is the Chairperson. It is also because of GST that many other taxes included in GST. Therefore it becomes ‘One Nation, One Tax’. Also know about GST registration rules and regulations
GST tax rates list
There are total 5 GST tax rates. And these are 0%, 5%, 12%, 18% and 28%. Even there is special tax rate of 0. 25% on semi precious stones and rough precious stones. While there is 3% tax on gold. Luxury cars, aerated drinks and tobacco products have additional cess. This cess is of 15%.
Taxation scheme of Goods and Services Tax
As you know that before GST there were many taxes. However after GST implementation many taxes included in Goods and Services Tax. This list also includes Services Tax, Central Excise Duty, Surcharges, Octroi, Additional Customs Duty and State level Value Added Tax. Besides GST tax replaced levies on inter state transportation of goods.
GST levy
GST applies on different transactions. And this list includes transfer, sale or purchase, barter, import or lease of goods and / or services. On other hand India took help of dual GST model. It means that Union and State Governments manage taxation process.
Even this became major factor for CGST, IGST and SGST. Below you understand what is CGST, IGST and SGST. You can now keep reading to know about it.
What is SGST? And what is CGST?
SGST full form is State GST or State Goods and Services Tax. Whereas CGST full form is Central GST or Central Goods and Services Tax. It means that Central Government and State Government levy CGST and SGST on transactions. It is only when transactions are in one state.
What is IGST?
IGST full form is Integrated Goods and Services Tax or Integrated GST. Additionally Central Government levies IGST on inter state transactions and imported goods and / or services.
[wp_ad_camp_2]
Let us understand this with help of some examples. Below you find these examples. Therefore you keep reading to know about it. Know more about process to enrol at GST official site. (content did not post)
Example case 1: calculation of GST and CGST
A is a dealer in Telangana. A sold goods to B in Telangana worth Rs. 5, 000. Then GST rate will be 18%. Here 9% is CGST and 9% is IGST rate. As a result Rs. 450 goes to Telangana Government while Rs. 450 goes to Central Government. And total tax comes up to Rs. 900.
Example case 2: calculation of IGST
We can take above example where CGST was 9% and SGST was 9%. But here A from Telangana sold goods to C from Maharashtra. Thus total taxes come under IGST. And these taxes charges go to Centre only.
Thus you know how to calculate SGST, CGST and IGST with examples. Even now you understand differences between SGST and CGST and IGST. In this way both State and Centre have their revenue. In addition from now on there will not be any check posts.
In this way goods will move fast from one place to another place without any disturbance. So Government of India makes transition to GST simple and easy. Finally you know about new GST taxes 2017