GST Full Form: What is GST, Types, Benefits, Disadvantages and Tax Rate.

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GST Full Form: What is GST, Types, Benefits, Disadvantages and Tax Rate.

You all must have heard about “One Nation One Card”, but today we will provide you information about GST. Do you want to know what is GST and what is the full form of GST, then let us tell you that, GST is full form (Goods and Service Tax) which is a type of Indirect Tax. There are total 28 states in our country, in which the first state to implement GST is Assam, after doing this, Assam has become the first state to implement Goods and Services Tax, and the last state to implement GST is Jammu and Kashmir.

The story of GST was first started in France all over the world. So France is the first country to implement GST. France first introduced GST in 1954 to prevent tax evasion. After this, tax facilities like GST are applicable in 160 other countries also. Whereas countries like Brazil and Canada have dual GST, in which different GST is applicable for each state and country. Single GST has been implemented in our country. If you want to know the complete information about GST in detail, then just keep reading this post of ours till the end.

What is GST

The government and many big economists have described the Goods and Services Tax as the biggest tax reform of the country. Goods and Services Tax is an indirect tax and under it, all goods and services have been taxed equally. Before the passage of the GST bill, tax of 30 to 35% had to be paid on any goods and the tax levied directly or indirectly on some goods was more than 50%. But after the introduction of GST, this tax has become the same at 28% everywhere.

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GST Full Form

GST Full Form is ‘Goods and Service Tax’.

What is GST Bill

Let us now read, what is GST Bill, it is a tax-related bill, which is also officially known as “The Constitution Amendment GST Bill 2014”. After the passing of the GST Bill, a uniform tax has been implemented in the country. This bill was passed in Rajya Sabha on 3 August 2016 and in Lok Sabha in May 2015. GST Bill is an indirect tax, due to which tax payers have started getting many facilities.

About GST

With the implementation of the Goods and Services Tax (GST) bill, the Indian market will be in one category and indirect taxes like excise duty, service tax, entertainment tax, VAT etc. will all be subsumed in GST. GST has been implemented across the country, now the question arises, the suggestion to implement GST in India was given by the Vijay Kelkar Committee and it was implemented by the then President Pranab Mukherjee and Prime Minister Narendra Modi. GST has been implemented from 1st July 2017. While this implementing, Finance Minister Arun Jaitley had said that GST will create one tax, one country, one market and economic development of the country and a new history will be made in the country.

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Types of GST

There are four types of GST in India, detailed information about them is given below.

1. Central Goods and Services Tax (CGST)

As per the Central Goods and Services Tax Act 2016, CGST is a centralized part of it which is presently covered under the duties- Central Sales Tax, Central Excise Duty, Service Tax, Excise Duty under Medical and Toilet Construction Act, Additional Duty of Excise etc.

2. State Goods and Services Tax (SGST)

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It has been created for state goods and services taxes as per the 2016 GST bill. This includes taxes related to goods and services such as state sales tax, luxury tax, entertainment tax, levies on lottery, entry tax, etc., through a uniform SGST.

3. Integrated Goods and Services Tax (IGST)

IGST stands for Integrated Goods and Services Tax, it is levied on the supply and exchange of goods and services from one state to another. For example, if there is supply of goods and services between Gujrat and Rajasthan, then IGST will be applicable there.

4. Goods and Services Tax (UTGST) for Union Territories

Union Territories in India have been placed under a special GST. Which is called “Union Territory Goods and Services Tax” as per the GST Regulator 2016. UTGST is responsible for implementing a uniform tax for all union territories in India.

Disadvantages of GST

While on one hand the benefits of GST are being told by the government, on the other hand, the loss to the country due to GST is also many, below are the losses due to GST.

  1. Before the implementation of GST, duty based transactions were taxed at 14.5 percent, which has now increased to 18%. Means if earlier the tax on goods worth Rs.1000 was Rs.145, it has now increased to Rs.180.
  2. If you buy a new house now, it has increased in value by 8%, this is likely to reduce the real estate sector by about 12%.
  3. After the implementation of GST, hotel food, air travel expenses and insurance premium have become expensive, after the implementation of GST, service tax on railway tickets has also increased.
  4. After the implementation of GST, there has been an increase in indirect taxes and direct taxes have almost disappeared.
  5. With the implementation of GST, the value of electronic goods such as TV, refrigerator, AC, mobile etc. has increased, earlier these goods were taxed at 23-25%, but after the introduction of GST, this tax has increased to 28%.
  6. Earlier there was 3% tax on jewelry and 4 to 5% State VAT on readymade garments but now it has become expensive after levying 18% GST.

Benefits Of GST In India

Now we told you about the disadvantages of GST. Now the question must be coming in your mind that what will be the benefit of GST, for this we have shown the benefits of GST below, so that it will be easy for you to understand the need of GST.

  • The general public of the country has benefited the most due to the implementation of GST because under it, the same tax has been applied on the purchase of all goods.
    After its arrival, the tax system in India has become easy and the system of ‘tax over tax’ has been got rid of.
  • After the implementation of GST, the rigging of tax by the officials of the tax department has also reduced.
  • The most important advantage in GST is that after its introduction, taxes like Service Tax, Central Sales Tax, State Sales Tax and VAT have been abolished.
  • Before the introduction of GST rules, we used to pay 30 to 35% tax on different goods, but now due to GST, only 18% tax is levied.

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GST Tax Rate

A total of four types of GST rates have been set by the GST Council, whose rates are 5%, 12%, 18% and 28 percent. Under this, exemption has been provided by GST on many things such as milk, curd, lassi, vegetables, fruits, salt, newspapers, printed books, flour, fish, eggs, chicken, vermilion, prasad, bangles etc. Daily There is no GST on essential items. Apart from this, traders with annual sales of less than 40 lakhs have also been exempted from this tax. According to GST, Cess is also levied on all luxury and expensive things along with GST. The list of GST as per GST rate revision effective from 1st October 2019 is displayed below.

Item Back Rate Current New Rate
Plates and cups made from flowers, leaves and tree bark 5% 0%
On supply of wagons and coaches of Railways (without ITC) 5% 12%
Outside food (without ITC) 18% 5%
on Diamond job 5% 1.50%
on other job Assignments 18% 12%
Hotel (at room fee of Rs.7,501 or more) 28% 18%
Hotel (Room Tariff from Rs.1,001 to Rs.7,500) 18% 12%
woven or non-woven polyethylene packaging bags 18% 12%
Marine fuel 18% 5%
Almond Milk 0% 18%
Slide fasteners 18% 12%
Wet grinder or wet grinder (as in stone) 12% 5%
Dried tamarind 5% 0%
Cut and polished semi-precious stones 3% 0.25%
Goods for Petroleum Operations under Hydro-Carbon Exploration Licensing Policy Applicable rate 5%
Cess on petrol motor vehicles with a capacity of 10-13 passengers 15% 1%
Cess on diesel motor vehicles with a capacity of 10-13 passengers 15% 3%

How To Make GST Bill

By using GST Bill Software called Ledgers GST, we can generate GST bill very easily. GST bill should be issued only if a business or individual who has GST registration and provides goods or services to a customer. As per GST rules, when the value of supply exceeds Rs.200, it is mandatory for the supplier to provide the GST bill.

GST Bill Format

The GST bill should be issued as per the GST bill sample shown in the rules given in the challan format. Below is a sample GST bill format created using Ledgers GST software.

GST Full Form: What is GST, Types, Benefits, Disadvantages and Tax Rate.

Conclusion

GST has made India’s economy a “one nation one tax” economy. Before its implementation, 17 different types of tax were levied in India, but now after the implementation of GST, only one type of tax is levied on all goods. Friends, today we have given you complete information about GST like- What is GST? (GST Meaning), GST Full Form, GST Benefits and Disadvantages, GST Billing etc. is explained in detail. If you liked this information then don’t forget to share it. Follow Google News APP.