Un­der­stand­ing GST

India Business Journal - - COVER STORY -

GST is a tax on eco­nomic ac­tiv­i­ties, like man­u­fac­tur­ing, ser­vices or trad­ing.

It will be levied on nearly all sup­plies ex­cept those listed as ex­empted sup­plies and im­ports. Al­co­hol for hu­man con­sump­tion and five petroleum prod­ucts (crude oil, petrol, diesel, ATF & nat­u­ral gas) are ex­empted from GST.

The tax has four slab rates of 5, 12, 18 and 28 per cent.

GST is col­lected at the point of con­sump­tion.

The new tax re­places eight Cen­tral and nine State taxes.

Com­po­si­tion Scheme for traders, man­u­fac­tur­ers and restau­rant own­ers with an­nual turnover be­low Rs 75 lakh of­fers lower tax op­tion at 1, 2, and 5 per cent on the turnover re­spec­tively.

The Cen­tre will levy and ad­min­is­ter Cen­tral GST (CGST) and In­te­grated GST (IGST). States will levy and ad­min­is­ter State GST (SGST).

No GST reg­is­tra­tion is re­quired for en­ti­ties with an­nual turnover of less than Rs 10 lakh for the North-East, Hi­machal Pradesh and Ut­tarak­hand and Rs 20 lakh for the rest of In­dia.

GST will have to be paid on­line through the GSTN plat­form, along with fil­ing of ap­pro­pri­ate re­turns, such as GSTR-1, GSTR-2, GSTR-3 and so on.

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