GST – A new concept of taxation in India
GST is a very new concept in India. It is the initiative to unify different markets in India through indirect taxation. State governments and the central government impose multiple taxes on various products and services. GST is a concept of subsumed all the taxes together.
Some of the taxes which are compiled together by GST include central excise duty, additional duties of customs, duties of excise, state VAT, Purchase tax, entry tax, entertainment and amusement tax, luxury tax, central revenue tax, advertisement tax, state surcharges and many more.
This one is indeed a historical movement to start GST Council in India. Indirect tax is introduced in India for the first time. For the progress of the nation, this consolidation of various taxes is indeed a revolutionary step. This reform was very much needed and essential in the national marketplace. This move makes the competitive market for the Indian goods and products.
Many countries throughout the world have already adopted this GST system. Australia implemented it in 2000. Canada started it in 1991. New Zealand started it in 1986, Malaysia in 2015 and Singapore in 1994. India has started GST recently in 2017 to give the best service to the Indian customers.
With the intention to implement GST by the government in India, they formed a committee of finance ministers to make the situation suitable for implementing GST. They had the experience of making the state VAT. They have done several surveys to precede the plan.
Later, the advisory committee of the finance ministry, between the year 2002 and 2004, investigated the arrangements of tax and the associated issues related to GST. In 2005 it became the very significant issue to unite all the taxes together. The aim was to complete the chain of production and distribution. It was decided that GST will be started in 2010 in India. Here you can also find the GST Training Program started by the Government of India
e-Way Bill System
The Government of India has initiated e-way bill system to facilitate & encourage GST e-Way Bill Registration. Follow the link and know more about the GST e Way services like CGST Rules, Billing System and more.
Taxpayer of GST
Search the Taxpayer list, you can find two ways as you can search by GSTIN and search by Composition Taxpayer.
The registration of GST
In recent days the registration is compulsory for those who are associated with the distribution of any product. It was approved by Narendra Modi, the Prime Minister of India. There are few simple steps to do the registration. You need to follow the steps below:
- For the new registration, you have to click the registration button. It was just the initiation of the process.
- After clicking a new tab will open. You have to select a status of yours as a taxpayer.
- Then you must fill the form with different information like the name, address, mobile number, account number, etc.
- The portal will confirm your password after providing all the required details.
- Next, you need to enter the OTP, and then you have to press Process button.
- You will get a temporary reference number from the portal. It will begin the next part of the registration.
- Then you need to click on the edit button.
- Before clicking the button “Save and Continue” you have to enter all the data.
- Then you can upload the documents.
- After that, you have to put the signature digitally and hit the button “Publish.”
- Last you have to click the “Proceed” button, and you will receive the registration reference number.
About the GST Bill
GST Bill is now very popular in all over India because of its intense impact. To simplify the complexities of taxation GST was very important. Through GST the entire nation will be unified through a straightforward tax. It will be beneficial for the individual taxpayer also.
1st July 2017 was the day when GST was implemented. GST bill introduced four particular tax slabs. GST bill must get a good response from the ordinary people as necessary items like the grains will not be taxed. There is also massive relaxation on the other commodities like soap, toothpaste, etc. Different electronic machines like refrigerator, TV, washing machine will be more economical in this service. The percentage of tax has already reduced.
Implementing GST is undoubtedly a smart idea of government. It has simplified the complicated process of taxation. As it was entirely a new concept to the citizen of India, there was some confusion regarding implementing it. But now it is understood that it is good for the customers.
The below table shows that taxes collected by State and Central Governments
|Central Government||State Government||Local Administration|
|Income Tax||Sales Tax||Property Tax|
|Excise Duty or Central VAT||Value Added Tax|
|Service Tax||Entertainment Tax|
|Customs Duty||Road Toll|
|Central Sales Tax||Professional Tax|
|Capital Gains Tax|
Advantages of GST
- The states will have no right to make brand new taxation laws regarding Goods and Services because it is a “Federal Law”
- In order to implement at cheaper different levels, it uses to simplify the system of tax and also easy to understand.
- Good and Services production from other states will become cheaper to buy.
- Because of canceling of various taxes and also tax cascade ultimately the customer will get the end – product at cheaper price.
- Till now, the products of petroleum and petrol have been kept out the GST Government until the further notice.
- And many more advantages are there because of the implementation of GST (Goods and Services Tax)
Disadvantages of GST
- Presently in the Indian System, there are many products are exempted from the taxation process i.e. why the GST system is not a favorable news for all the sectors.
- The GST offered to have the minimum list of exemption, now at present, higher taxes are collected on only fewer products but now with GST lower taxes will be collected on almost all products.
- Alcohol making industries will not get any advantages from GST because it is not applicable to liquor for consumption by a human.