What is GST??
GST is an abbreviation of the Goods and Service Tax. This Scheme of taxation is followed by our nation India. It merged different taxes like Excise duty, Service tax, Custom duty, VAT (state level) and Octroi into single taxation system. In simple word, GST is
one indirect tax system for the entire country.
What are GST Rates?
The whole GST scheme is divided into five different collections of the tax which are 0%, 5%, 12%, 18%, and 28%. Most of the products have come into these categories except Electricity, alcoholic beverages, and Petroleum product. Also a special rate of 0.25% on precious stone and 3% on Gold. Also, some products like drinks, luxury cars, and tobacco products are moderate rate among 18% to 28%.
When did it launch?
The GST act was passed in the Parliament on 29th March 2017 and it has been effectively implemented from 1 July 2017. The history of implementation of the GST act was started by Vishwanath Pratap Singh who is finance minister in 1986. And many governments were trying to implement this but they failed because of political pressure. But when in the Lok-Sabha election 2014, the BJP (Bhartiya Janta Party) elected with the massive majority they reintroduced GST bill. New finance minister Arun Jaitley proposed the GST bill in the Lok Sabha and in the midnight of the 01/07/2017. It launched by the Government of India and president of India.
Some of the advantages of GST:-
- It removed the price variation of the products in different states.
- It increases the number of taxpayers hence it helps in tax revenues.
- It will boost the GDP (Gross Domestic Product) growth by 0.5%-2%.
- The registration for GST is quite easy as it is an online application system.
- The compliance about the system also has been replaced.
- It increases efficiency in the logistics system.
- Different unorganized sectors are regulated after the launching of the GST since it is a transparent taxation system.
- It will help with the building of a corruption nation.
What is CGST/ SGST/ IGST?
CGST (Central Goods and Service Tax): In here tax collection is done by the Central government when transactions happening within a state like Chhattisgarh.
SGST (State Goods and Service Tax): the tax is collected by State government when transactions happening within a state like Chhattisgarh.
IGST (Integrated Goods and Service Tax): In here tax collection is done by the Central government when the transaction is going to happen between two states like Chhattisgarh and Madhya Pradesh.