GST was an idea conceived in 2000 to unite the Indian nation under One Nation, One Tax. Since then, 17 years have passed to make this law a reality. In 2017, GST was finally passed in Lok Sabha and Rajya Sabha.
It is important because it managed to bring India under one tax umbrella, which led to international confidence in Indian goods and services. It also made business incredibly easy to do within the country, as enterprises now had one common taxation scheme under which they could operate.
In this guide, we will discuss all the aspects of GST, including how you can register for it and how to calculate it. Let’s get started!
GST stands for Goods and Services Tax which came into effect on 1st July 2017. This is indirect taxation, which an end consumer usually pays.
GST replaced many other indirect taxes such as excise duty, VAT, service tax, entry tax and luxury tax.
In brief, this tax is levied on the supply of goods and services. It is calculated on the value added to any goods. Goods and Services Tax in India is a comprehensive, destination-based and multi-stage tax added on every value addition.
Let's take a complete look into what these various terms mean, thereby understanding what GST is all about.
With this understanding of what is GST tax, you can go on to understand different types of GST.
There is a four-fold break-up of goods and services tax in India. It oversees the levy of tax for central government GST, GST for states, union territories, and the integrated goods and services tax. You can check out the details of these below.
There are different types of GST slab rates. These are 0%, 0.25%, 1.50%, 3%, 5%, 12%, 18% and 28%. The GST council revises these rates to ensure efficient pricing of these products.
Here are the different slabs of GST and the various goods and services that fall under these categories.
These are some of the goods and services that you can get at these particular tax brackets.
Every business with a turnover that exceeds Rs.20 lakhs or Rs.10 lakhs for the North East and hill states must register as a normal taxable person. This process is called GST registration. GST registration usually takes between 3-6 days and can be quite a tedious process.
Every individual or business has to register for GST. You will have to apply with the Goods and Services Network (GSTN). Once you have registered, you will receive a Goods and Services Tax Identification Number. This is a 15 digit number that is issued state-wise once you have completed the registration.
Some of the documents that you will require while registering for GST are:
Follow these steps to apply for GST registration online.
This is how you complete the application for the GST number.
The following formulae is needed for calculating the GST before the application of GST and after the removal of GST. Here's how GST is calculated.
GST Amount = (Original Cost x GST Rate)/100
Net Price = Original Cost + GST Amount
Net Price = Original Cost – GST Amount
You can also find several GST tax calculators online.
There are manifold benefits of GST registration. These are a few of them.
One of the chief benefits of the GST to the government is bringing all the nation's markets under one tax system. This creates confidence in the international market for Indian products and increases foreign investment. This boost to foreign investment will help Indian products reach a global venue and increase the export and import market.
The benefits of GST to the consumer are manifold. Consumers will have to pay much less than before when they had to pay VAT. GST is a one-time tax, so it is charged at just one stage. For example, food items have become cheaper and packaged goods such as shampoos, toothpaste and soaps have become more affordable.
All businesses have to file monthly, quarterly, or annual GST returns. You can file the GST returns online. A GST return is a document that contains the sales, purchase, expense, or income of every business or person with a GSTIN. This document is used by tax authorities to calculate the net tax liability. There are different GST return charges.
You can do the GST return filing online.
GST helpline number and official details
1) You can call the GST Helpline Numbers, which are given below and contact the government authorities to help with GST filing.
|
Helpdesk Name |
Phone Number(s) |
|
GST Help Desk |
1800-103-4786 |
|
Saksham Seva |
1800-266-2232, 1800-121-4560 |
|
CBEC Mitra |
1800-1200-232 |
|
ICEGATE Help Desk |
1800-3010-1000 |
2) Here are some of the key email contacts that you can contact for the filing of your GST.
|
Helpdesk Name |
Email ID |
|
GST Help Desk |
helpdesk@gst.gov.in |
|
Saksham Seva |
saksham.seva@icegate.gov.in |
|
CBEC Mitra |
cbecmitra.helpdesk@icegate.gov.in |
|
ICEGATE Help Desk |
icegatehelpdesk@icegate.gov.in |
3) GST Self Service Portal
Under the Services→User Services section of the official GST portal https://www.gst.gov.in/, You can fill out the grievances in the form along with your details and complaint, which will then be addressed.
In conclusion, GST is the tax change that has united the country under One Nation, One Tax. It has made the taxation system much simpler and has joined the country irrespective of the state into one tax regime that makes business easier and more manageable for day-to-day transactions.
Hence get acquainted with the details of GST and make sure your business is compliant with all its mandates!
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