This is the term which currently everyone has to deal today, one way or the other, after the passing of much-delayed constitutional amendment bill on 6th May to introduce the Goods and Service Tax, hectic preparations were on to practically implement it. Though the motion was set way back in 2000 when the Vajpayee Government started discussion on GST by setting up empowered committee.
GST is a indirect tax on manufacture, sale, consumption of goods and on services. Multiple types of tax on goods and services will be eliminated. Goods and Services shall have tax:
- State Level GST( SGST)
- Central Level GST (CGST)
- Integrated Goods & Service Tax (IGST). This is on interstate supply of goods and/or services.
Taxes paid under SGST shall be allowed as Input Tax Credit against SGST.
Taxes paid under CGST shall be allowed as Input Tax Credit against CGST.
But ITC (Input Tax Credit) of SGST shall not be allowed against ITC of CGST and vice-versa.
IGST shall be distributed between Centre and State.
Following taxes of the State shall be subsumed under GST
- Octroi and Entry Tax
- Value Added Tax (VAT)
- Luxury Tax
- Purchase Tax
- Taxes on Lottery, Betting and Gambling
- State Cess and Surcharge
- Entertainment Tax
Procedure for GST registration:
- Those who are already registered under VAT would be getting provisional ID and password
- A new GST portal has been floated by the government, https://www.gst.gov.in
- Create a new user ID and password in the above mentioned site by using the provisional ID and password.
- Once you create new user ID and password, you will getting eight fields, namely:
- Business Details
- Authorized Signatory
- Principal Place of Business
- Additional Places of Business
- Goods and Services
- Bank Accounts
After filing the application, one can use DSC(digital signature certificate) to digitally sign the same.Click Submit.
That was easy, isn’t it and we thought that there would be a lot of hue and cry.