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Gst Notes PDF

Goods and Services Tax (GST) is an indirect tax introduced in India on July 1, 2017, aimed at creating a unified market and simplifying the tax structure by replacing multiple central and state taxes. It is a multi-stage, destination-based tax levied at various stages of the supply chain, with rates ranging from 0% to 28% depending on the goods or services. GST also includes provisions for zero-rated and nil-rated supplies, and is collected by both central and state governments.

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8 views

Gst Notes PDF

Goods and Services Tax (GST) is an indirect tax introduced in India on July 1, 2017, aimed at creating a unified market and simplifying the tax structure by replacing multiple central and state taxes. It is a multi-stage, destination-based tax levied at various stages of the supply chain, with rates ranging from 0% to 28% depending on the goods or services. GST also includes provisions for zero-rated and nil-rated supplies, and is collected by both central and state governments.

Uploaded by

Rajasekharan Kuntheti Gopalakrishna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Goods and Services Tax - GST

❖ GST is known as the Goods and Services Tax. It is an indirect tax.


❖ Introduced by Govt of India from 01-07-2017.
❖ Doctrine – One Nation One Tax.
❖ GST is a destination-based single tax.
❖ GST is a multi-stage tax.
❖ GST has replaced 8 central taxes, 9 state taxes and 27 cesses and thereby
eliminating the need for filing multiple tax returns andassessments.
❖
❖ Purpose –
o Unified market
o Smooth flow of goods & services
o No Hidden Taxes
o Reduction of overall tax burden,
o Effective deployment of public funds for fulfilling social objectives
for sustainable development.
o Customers to have wider choices.
o Increased economic activities.
o More Employment Opportunities.
For Other Key Features of GST and GST Council details see Text page 249.
For Projects # 4 & 5 and activity refer Text page 256 &257.

An item goes through multiple change-of-hands along its supply chain: Starting from
manufacture until the final sale to the consumer.

Let us consider the following stages:


• Purchase of raw materials
• Production or manufacture
• Warehousing of finished goods
• Selling to wholesalers
• Sale of the product to the retailers
• Selling to the end consumers
The Goods and Services Tax is levied on each of these stages making it a multi-stage tax.

Rationalised 2023-24
Destination-Based
Consider goods manufactured in Maharashtra and sold to the final consumer in
Karnataka. Since the Goods and Service Tax is levied at the point of consumption, the
entire tax revenue will go to Karnataka and not Maharashtra.
GST Rates
GST rates are as under
• 0% (necessity items like milk, wheat flour)
• 0.25% (rough diamonds)
• 3% (gold, silver etc.)
• 5%
• 12%
• 18%
• 28%
There is also a Cess which is applicable only on a handful of goods like car, tobacco, pan
masala.
There are also goods/services on which GST is applicable at NIL rate or which are
exempted.

Zero-rated supplies mean: –


• Export of goods or services or both; or
• Supply of goods or services or both to a Special Economic Zone unit.
For example, export of mobile phones to Australia, providing bookkeeping services to a
company located in New York.
Nil-Rated Supply
Supply of goods or services or both on which nil or 0% GST rate is applicable are called
NIL rated supply. For example, cereals, fresh fruits, and vegetables, salt, natural honey,
milk, human blood etc. Remember that no input tax credit of inputs and/or input services
used in providing nil rated supply is available.

Types of GST Collecting authority Benefiting authority

SGST State Government State Government

Union Territory (UT)


UGST Union Territory (UT) Government
Government

CGST Central Government Central Government

IGST Central Government State Government and Central Government

Rationalised 2023-24

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