- Central Sales Tax
- State VAT
- Purchase Tax
- Luxury Tax
- Entry Tax
- Taxes on Lotteries, Betting and Gambling
- Entertainment Tax
- Taxes on Advertisements
- State Cesses and Surcharges
- Countervailing Duty (CVD) of Customs
- Central Excise Duty
- Special Additional Duty of Customs
- Service Tax
- Duties of Excise Under Medicinal and Toilet Preparations Act
- Additional Duties of Excise
- Cesses and Surcharges
There are 4 major components of GST
1) Central GST (CGST)
2) State GST (SGST)
3) Integrated GST (IGST)
4) Union Territory GST (UTGST)
Central Goods & Services Tax or CGST is a tax levied upon the transaction amount when you purchase any goods or services. The transaction amount is the value that you pay while buying any goods. CGST is governed by Central Goods & Services Act, 2017.
State Goods & Services Tax or SGST is levied upon the transaction amount of the goods and services and is governed by section 15 of SGST Act. This GST is levied upon the Intra-state supplies of goods and services.
Integrated Goods & Services Tax or IGST is an indirect tax imposed by the Central Government for the inter-state supply of goods and services. IGST is applicable for only the goods or services in case of import from India or export from India.
It is an indirect tax levied and collected by the Union Territory on the supply of goods or services that take place in Union Territories. This tax is governed by the Union Territory Goods and Services Act (UTGST), 2017 UTGST is levied upon the intra-state supply of goods and services.
There are two kinds of supplies
This is a kind of supply where the location of the supplier and the destination of supply are in the same State or Union Territory. In this type of supply, a seller must collect both CGST & SGST. CGST & SGST are deposited to the Central Government & State Government respectively.
In this kind of supply, the location of the supplier and the destination of supply are in:
- Two different States
- Two different Union Territories
- A State & a Union Territory
The inter-state supply of Goods & Services, IGST tax is levied and is collected by the Central Government.
Benefits of GST
1. Simplified & uniformed tax structure
One of the major highlights of GST is that it combines all the indirect taxes under a single umbrella making the tax structure simplified and uniform.
2. Higher threshold for registration
In the VAT structure, a business with a turnover of more than 5 lakhs was liable to pay VAT but with GST, this threshold is increased to 20 lakhs.
3. Easy online procedure
The complete procedure for GST, right from registration to filing returns can be done online and is super easy.
4. Composition scheme for small businesses
Small businesses with turnover up to 70 lakhs can enjoy the benefit of lowered taxes by utilizing the composition scheme.
5. Lesser number of Compliances
In contrast to other tax structures, there is just one unified return that needs to be filed. This reduces the number of returns and compliances.
Now that you know all about GST and its advantages, you can make well-informed decisions and grow your business using business loans at Finserv MARKETS.