ABOUT GST Registration
India’s biggest indirect tax reform since 1947 looks it has finally the Goods and Service Tax. The Constitution (122 Amendment) Bill, 2014 seeks to amend the Constitution to introduce the goods and service tax (GST). The GST subsumes various Central indirect taxes including the Central excise Duty, Countervailing duty, Service Taxed. It also subsumes state value-added tax, luxury tax, etc.
The GST is being introduced not only to get rid of the current jumble of indirect taxes that are suffering from infirmity, mainly exemptions and multiple rates but also to improve tax complaints.
LIST OF GST rates for Goods:-
The multiplicative of tax rates for services will add complexity to the compliance in the GST regime.
The GST council broadly approved GST rates for goods at nil rate, 5%, 12%, 18%, and 28% on certain goods.
- GOODS-No tax will be imposed on items like jute, fresh meat, milk, butter milk, natural honey, fresh fruits and vegetables, etc.
- SERVICES- Hotels and lodges with tariff below rs 1000, grandfathering services has been exempted under GST.
- GOODS-Packed food items, footwear below 500, cream, branded paneer, frozen vegetables, pizza bread, rusk, kerosene, coal, medicines.
- SERVICES- Transport services (Railways, air transport), small restaurants.
- GOODS-Apparel above rs 1000, frozen meat products, butter, cheese, ghee, Ayurvedic medicine, tooth powder, coloring books, cellphone, etc.
- SERVICES- Non AC hotels, business class air tickets, fertilizer, work contracts.
- GOODS-Footwear costing more than Rs 500, bidi, biscuits, flavored refined sugar, pasta, cornflakes, James, instant food mixes, mineral water tissues, envelopes, tampons, notebooks, steel products, camera, speakers.
- SERVICES- AC hotels, telecom services, IT services
- GOODS-Bids, chewing gum, molasses, chocolate not containing cocoa, waffle, pan masala, paints, deodorants, shaving creams, hair shampoo, dye, sunscreen, weighing machines, washing machines, ATM, vacuum cleaner, automobiles, motorcycles, aircraft for personal use.
- SERVICES- 5-Star hotels, race club betting, cinema.
ADVANTAGES OF GST:-
- The biggest impact of GST is an economically efficient solution that has to compete with the companies in the unorganized sector.
- It reduces the logistic costs and consolidation of warehousing facilities.
- GST will simplify tax administration, improve compliance and eliminate economic distortions in production, trade, and consumption.
- GST avoids the “cascading “of taxes, therefore cutting the production cost and making export more competitive.
- Revenue will get a boost- States and Center will have dual oversight. The number of tax-exempt goods will decline.
1. What is the benefits which will accrue to the country from GST ?
GST would be a very significant step in the field of indirect tax reform in India. A large number of central and states taxes into a single tax and allowing set of prior stage taxes, make common national markets.
2. What are the benefits available to small taxpayers under the GST regime ?
Taxpayers with an aggregate turnover in a financial year up to Rs 20 lakhs Taxpayers with an aggregate turnover in a financial year up to Rs 20 lakhs & Rs 10 lakhs for NE and special category states would be exempt from tax.Further,a person whose aggregate turnover in the preceding financial year is less than Rs 50 lakhs can opt for composition scheme where tax will payable at a concessional rate on the turnover in a state.
3. Are all goods and services taxable under GST ?
Supplies of all goods and services are taxable except alcoholic liquor for human consumption.
4. Can any person other than the supplier or recipient be liable to pay tax under GST ?
YES, the central/state government can specify categories of services the tax on which shall be paid by electronic commerce operators.
5. Will a taxable person,having multiple registrations, be eligible to opt for composition schemes only for a few of registration ?
All registered persons having the same Permanent Account Number (PAN) have to opt for composition scheme. If one registered person opts for normal schemes, others become ineligible for composition schemes.