types of GST

All About GST – Goods and Services Tax

The goods and services tax (GST) is a value-added tax imposed on most goods and services sold for regular domestic purposes. GST is a tax that is levied on the supply of goods and services, right from the manufacturer to the consumption holder. GST is mainly purpose for single-rate tax which is used globally.

Tax is applied to the supply chain of goods and services. GST is a submerged of many taxes like VAT, Excise Duty, Service tax, and Octroi.

In India, GST Act was passed in Parliament on 29th March 2017 and GST was implemented on 1st July 2017.

The GST Council has approved rate structure – 5%, 12%, 18%, and 28% – with mostly goods like to fall in the category of 12% and 18% rate. In addition, a cess will be imposed on luxury and sin goods.

Category under the Goods and Services Tax:

➢ Central goods and services tax (CGST)

➢ State goods and services tax (SGST)

➢ Union territory goods and services tax (UTGST)

➢ Integrated goods and services tax (IGST)

types of GST

CENTRAL GOODS AND SERVICES TAX

Central goods and services tax is imposed on the supply chain of goods and services undertaken within Intra State.

The CGST is charged by the Central Government which is sum up of a few indirect taxes like

  • Cesses
  • Custom Duty
  • Service Tax
  • Central Excise Tax

Both the Central and the State governments will agree on combining their taxation with an appropriate proportion for revenue sharing between the government.

STATE GOODS AND SERVICES Tax

State Goods and Services Tax are charged by the State Government which is imposed on goods and services also at the Intrastate level. SGST is a sum-up of many tasks like VAT, Entertainment tax, Sales tax, etc. Both CGST And SGST agree to combined their appropriate and equal portion of the percentage which is levied by the government is 18%.

Example for CGST and SGST

Let’s suppose Krishna is a dealer in Uttar Pradesh who sold goods to Raman in UP worth Rs. 10,000. The GST rate is 18% comprising of CGST and SGST equally divided rate of 9%. In such a case, the dealer collects Rs. 1800 of which Rs. 900 will go to the Central Government and Rs. 900 will go to the Uttar Pradesh Government.

Integrated Goods and Services Tax

Under GST, IGST is a tax imposed on inter-State supplies of goods and services and will be governed by the IGST Act. IGST will be applicable on any supply of goods and services which is done outside the country.

Let us suppose the sale of goods and services is done for RS 1 lakh. On this sale, GST is applicable @18% directly. This means the dealer to pay Rs 18000 as tax to the government.

Union territory goods and services tax (UTGST)

UTGST is levied by the Intra State supplies of goods and services. UTGST is a counter of SGST. UTGST is applicable only on the supply of 7 union territories.

WHY NEW GST REGISTRATION IS MANDATORY?

New Registration of GST is a mandatory requirement for all businesses. The business has to register under the GST Act Rules, to generate their GST number for smoothly running their business.

There are many small- and large-scale business who should register for GST like e-commerce aggregator, Supplier, and Distributors, who supplies online information of goods and services, etc. Businesses that have a turnover above 40 lakhs have a limitation for GST for sale of goods in normal category state and 10 lakh GST limit for special category states like hill states and the North Eastern States.

How to register GST online in a hassle-free manner?

In this Digital Era, LEGALWISER offering you to get a new GST Registration in Agra. We are waiting to give our excellent services for your business to register and apply for a GST online Number.

Below are the GST Registration benefits in Agra and PAN-India which you will be getting from LEGALWISER mention below: –

➔ Apply for online GST Number

➔ New GST Registration

➔ Special Discounts for GST Registration in Agra

These all services are provided by us as per your requirement. We have professionals who can help you with GST Registration in Agra and PAN- India.

Contact us to know more we are happy to help you in your process of online GST Registration.

 

 

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