Goods and Service Tax GST Introduction For IPCC Nov 2021


Goods and Service Tax GST has been implemented in India. The main vision of the GST is to one nation One Tax. Students GST is not Important From the Syllabus Point of View about Also Education method also. On this web page, we cover the GST Current Status and Its Impact, Frame Work of GST In India with Compliances. Place of Supply Under GST For Input Tax Credit, Transitional Provisions, Potential implications Under GST and Implementation of GST. As we observe the earlier Indirect Taxes in India we need to Excise Central Levies and State Levies. But when we discuss the GST only Intra State Supply and Inter-State Supply Considerations will make to Calculate the CGST Plus SGST and UTGST taxation.

GST Introduction For IPCC May Attempt 

Intra State Supply:- If the Transitions takes place within the State called as Intra State Supply of Goods and Services. Here we implement the CGST + SGST/UTGST On the Supply of all Goods and Services.

For Example:- If the Seller sells goods to X party of Telangana State and Buyer Y From also Telangana State. It will be treated as an Intra State Supply of Goods and Services. In this case, we need to implement the CGST and SGST or UTGST ( If it is union Territory).

Inter-State Supply:– Transition takes two states it is treated as Inter-State Supply of Goods and Services. When transitions are taken place between two states are called as Inter-State Supply we impose IGST ( Integrated Goods and Services Tax ).

For Example- X sells goods to Y From Telangana To Maharashtra. In this case, we treated this transition as Inter-State Supply of Goods and Impose the Integrated Goods and Services Tax IGST.

Important Aspects of Goods and Service Tax GST

  • Threshold For Tax Liability
    INR 10 Lakhs For North East States
    INR 20 Lakhs For Rest of the Indian States
  • Cess to be levied on demerit goods like Aerated Drinks, Luxury Cars, and Tobacco.
  • The supply of Alcoholic Liquor for human Consumptions cannot be treated under the GST ambit and It can be levied by the State government.

Taxes To Be Subsumed In CGST ( Central Goods and Service Tax)

  • Service Tax
  • Central Excise Tax
  • Duty
  • Additional Excise Duties
  • Additional and Special Additional Duty of Customs
  • Central Cesses
  • Surcharges on Goods and Services

Taxes To Be Subsumed In SGST

  • Value Added Tax VAT.
  • State Cesses
  • Surcharges On Goods and Services
  • Taxes On lottery Betting and Gambling
  • Entry Tax and Octroi
  • Central Sales Tax
  • Purchase Tax and Luxury Tax
  • Entertainment Tax

Note:- Alcoholic Beverages For human Consumption, Petroleum, Medicinal, and Toilet Preparations are kept out of the GST.

Broad Architecture of Goods and Service Tax GST

  • Introduction of Anti-Profiteering Measures.
  • No Generic Abatement or Alternative Tax Payment Option Available For Restaurants
  • Place of Supply Rules prescribed For both Goods and Services
  • All Input Taxes are Eligible For Credit
  • GST Compensation Cess to be levied On Notified Services and Goods for 5 Years.
  • Free Supplies of Goods and Services As per Supplies Without Consideration to be taxable Branch Transfers Chargeable to IGST.
  • Transitional Provisions Prescribed For Seamless Shift to GST Regime.
  • A four tires Rate Structure has been implemented like 5 %, 12 % 18 %, and 28 %.
  • Levy on Supply of Goods and Services For Subsume Most of Current Indirect Taxes Into a Single GST Levy.

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