1. What is GST ?
2. How GST is calculated on various items.
3. Collect two bills representing the GST collected items.
4. Represent the data in your book with relevant pictures.
Answers
Answer:
GST is a multi-stage tax system which is comprehensive in nature and applied on the sale of goods and services. The main aim of this taxation system is to curb the cascading effect of other indirect taxes and it is applicable throughout India.
Latest GST Updates and Announcements
GST rates revised in 44th GST Council for crucial Covid-19 relief goods till September 2021.
Under the exempted category, import of Amphotericin B (medicine for black fungus) has been included.
Know More about GST Latest News in Detail
This article will cover the following headings and gives you detailed knowledge of GST taxes.
Table of Contents
What is GST & how it works?
Who is Eligible for GST?
Registration of GST
GST Returns
How do I calculate GST?
What is GST & how it works?
GST stands for Goods and Services Tax. It is an Indirect tax which introduced to replacing a host of other Indirect taxes such as value added tax, service tax, purchase tax, excise duty, and so on. GST levied on the supply of certain goods and services in India. It is one tax that is applicable all over India.
Given below is how will GST works:
Manufacturer: The manufacturer will have to pay GST on the raw material that is purchased and the value that has been added to make the product.
Service Provider: Here, the service provider will have to pay GST on the amount that is paid for the product and the value that has been added to it. However, the tax that has been paid by the manufacturer can be reduced from the overall GST that must be paid.
Retailer: The retailer will need to pay GST on the product that has been purchased from the distributor as well as the margin that has been added. However, the tax that has been paid by the retailer can be reduced from the overall GST that must be paid.
Consumer: GST must be paid on the product that has been purchased.
History Of GST
On July 1st 2017, the Goods and Services Tax implemented in India. But, the process of implementing the new tax regime commenced a long time ago. In 2000, Atal Bihari Vajpayee, then Prime Minister of India, set up a committee to draft the GST law. In 2004, a task force concluded that the new tax structure should put in place to enhance the tax regime at the time.
In 2006, Finance Minister proposed the introduction of GST from 1st April 2010 and in 2011 the Constitution Amendment Bill passed to enable the introduction of the GST law. In 2012, the Standing Committee started discussions about GST, and tabled its report on GST a year later. In 2014, the new Finance Minister at the time, Arun Jaitley, reintroduced the GST bill in Parliament and passed the bill in Lok Sabha in 2015. Yet, the implementation of the law delayed as it was not passed in Rajya Sabha.
GST went live in 2016, and the amended model GST law passed in both the house. The President of India also gave assent. In 2017 the passing of 4 supplementary GST Bills in Lok Sabha as well as the approval of the same by the Cabinet. Rajya Sabha then passed 4 supplementary GST Bills and the new tax regime implemented on 1st July 2017.
Tax Laws Before the Implementation of GST
The Centre and the State used to collect tax separately. Depending on the state, the tax regimes were different.
Even though import tax was levied on one individual, the burden was levied on another individual. In the cases of direct tax, the taxpayer must pay the tax.
Prior to the introduction of GST, direct and indirect taxes were present in India.
Types of GST
The four different types of GST are given below:
Central Goods and Services Tax : CGST is charged on the intra state supply of products and services.
State Goods and Services Tax : SGST, like CGST, is charged on the sale of products or services within a state.
Integrated Goods and Services Tax : IGST is charged on inter-state transactions of products and services.
Union Territory Goods and Services Tax : UTGST is levied on the supply of products and services in any of the Union Territories in the country, viz. Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is levied along with CGST.
Step-by-step explanation:
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Answer:
Answer 1 ) GST means Good service tax
Answer 2 ) Following formula helps to calculate net price of the product after application of GST and removing GST as well. Net Price = Original Cost – GST Amount.
Answer 4) This is in the pic
