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This document covered Most of the topics under gst and more Study notes Business Taxation and Tax Management in PDF only on Docsity! GST STUDY NOTES What is Mean by GST : • GST is known as the Goods and Services Tax. • It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. • The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. • Goods and Services Tax (GST) is a successor to VAT used in India on the supply of Goods and services. GST is a digitalized form of VAT where you can also track the Goods & services. • The statutory tax rate for most goods was about 26.5%; post-GST, most Goods are expected to be in the 18% tax range. • Gateway of Tally > Display > Statutory Reports >GST > GST Rate set up. Choose the items which have the specified HSN Code. Press Set Rate, and choose the GST Classification. Create different classifications for items that come under different HSNs and Attach them to the required items. You can create a GST Classification in order to record the Tax rate and other details for a category of goods attracting a specific GST rate. Slab Rate Of GST : • Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and 28%. • Petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system. • There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. In addition a cess of 22% or other rates on top of 28% GST applies on several items like aerated drinks, luxury cars and tobacco products. Pre-GST, the statutory tax rate for most goods was about 26.5%; post-GST, most goods are expected to be in the 18% tax range. Objective of GST : ▪ The elimination of multiple tax systems. ▪ Increase in compliance with businesses. ▪ To reduce the prices. ▪ Boost the country’s complete revenue. ▪ For higher efficiency and productivity. Types and components of GST : 1. SGST 2. CGST 3. IGST 4. UGST SGST : State government levies SGST on the intra-state transactions of goods and services. The revenue collected is earned by the state government wherein this transaction takes place. SGST subsumes earlier taxes like purchase tax, luxury tax, VAT, Octroi, etc. CGST : The Central government levies CGST on the intra-state transactions of goods and services. It is levied alongside SGST or UGST, and the collected revenues are shared equally between the center and the state.
