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| GST is a consumption based taxlevy. It is based on the “Destination principle.” GST is applied on goods and services at the place where finalactual consumption happens. GST is collected on value-added goods and services at each stage of sale or purchase in the supply chain. GST paid on the procurement of goods and services can be set off against that payable on the supply of goods or services. The manufacturer or wholesaler or retailer will pay the applicable GST rate but will claim back through tax credit mechanism. But being the last person in the supply chain Women's Jim Brown Jersey , the end consumer has to bear this tax and so, in many respects, GST is like a last-point retail tax. GST is going to be collected at point of Sale.
The GST is an indirect tax which means that the tax is passed on till the last stage wherein it is the customer of the goods and services who bears the tax. This is the case even today for all indirect taxes but the difference under the GST is that with streamlining of the multiple taxes the final cost to the customer will come out to be lower on the elimination of double charging in the system.
Let us understand the above supply chain of GST with an example:
The current tax structure does not allow a business person to take tax credits. There are lot of chances that double taxation takes place at every step of supply chain. This may set to change with the implementation of GST.
Indian Government is opting for Dual System GST. This system will have two components which will be known as
Central Goods and Service Tax (CGST) and
State Goods and Service Tax (SGST).
The current taxes like Excise duties, service tax, custom duty etc will be merged under CGST. The taxes like sales tax, entertainment tax, VAT and other state taxes will be included in SGST.
So, how is GST Levied?
GST will be levied on the place of consumption of Goods and services. It can be levied on :
Intra-state supply and consumption of goods & services
Inter-state movement of goods
Import of Goods & Services
GST-Goods and services Tax is a comprehensive tax levyon manufacture, sale and consumption of goods ans servivces at a mnational level. One of the biggest taxation reforms in india the goods and services Tax is all set to integrate state economies and boost overall growth.
The system will change from the current production-based taxation to being consumption-based. Along with bringing about a semblance of uniformity in taxes across states, this is expected to increase efficiency and compliance in the system.
Get More Information GST Enrollment in India. Ethnical coupled with Tropical Charms Christmas presents for men and some women and features Extraordinary Engagement Happens to be sometimes Mens Fantastic Hallum Blanc
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