Goods and Services Tax (GST) in India
Overview
Goods and Services Tax (GST) is a comprehensive tax levied on the manufacture, sale, and consumption of goods and services in India. It was introduced on July 1, 2017, replacing the previous system of multiple indirect taxes. GST is a destination-based tax, meaning the tax is collected from the place where goods and services are consumed rather than where they are produced.
Categories of GST
GST is a single, unified tax divided into three distinct categories:
Central GST (CGST): Levied by the Central Government on intra-state transactions.
State GST (SGST): Levied by the State Government on intra-state transactions.
Integrated GST (IGST): Levied by the Central Government on inter-state transactions.
GST Rates
The rate of GST varies depending on the type of product or service being taxed, with rates ranging from 0% to 28%.
Key Sections of the GST Act
Levy and Collection: Mechanisms of levying and collecting GST.
Input Tax Credit: Provides for credit of input tax paid on goods and services used in the course of business.
Composition Scheme: Simplified tax scheme for small taxpayers to pay GST at a lower rate.
Registration: Mandates the registration process for taxpayers under GST.
Payment of Tax: Procedures for payment of GST.
Returns: Requirements for filing GST returns.
Refunds: Process for claiming refunds of GST.
Invoice and Records: Requirements for maintaining invoices and records.
Tax Deduction at Source (TDS): Conditions for TDS under GST.
Assessment and Audit: Procedures for assessment and audit under GST.