BRIEF INTRODUCTION OF GST

• GST is levied on ‘supply of goods or services or both’, in India including the state of Jammu and Kashmir
• GST is the Destination based tax on the consumption of goods and services
• It is a single tax on supply of goods and services.
• It is levied at all stages right from manufacture to final consumption with credit available at each stage of tax paid. In short only Value addition is taxed.
• India has adopted dual GST model i.e. Central and state will simultaneously levy GST on taxable goods and services or both, which takes place within a state or union territory
• Tax imposed concurrently by the Central and States on intra-supply of goods/services called as central goods and services tax(CGST)
• And that levied by the states/union territory is called State goods and services tax (SGST)/ Union Territory Goods and services tax (UTGST)
• Registration :

Every supplier of goods/services is required to obtain registration in the state/union territory from where he makes the taxable supply if:

 Aggregate turnover exceeds Rs. 20 lakh during the financial year. However,

 The limit is reduces to Rs.10 lakh, if the person carrying the business in the special category states except Jammu and Kashmir

Special Category States

• Composition Scheme : For availing relief to small businesses, a simple payment of tax and accounting treatment has been provided. Along with the relief there is the provision for granting exemption from payment of tax on specifies goods/services.
• Utilisation of ITC (Input Tax credit)

IGST is Integrated GST levied by Central Goverment on Inter state transactions and collected by Central Goverment

GST shall be levied on all supply of goods and services except Alcoholic Liquor for Human Consumption

GST shall not be levied on following products till a date to be notified in a GST council

1. Petroleum Crude
2. High Speed Diesel
3. Motor Spirit (petrol)
4. Natural Gas
5. Aviation Turbine Fuel

The Union Government shall retain the power to levy Excise duty on the above products besides Tobacco and Tobacco products manufactured or produced in India.

CS SWEETY S. JAKHOTIA