Today we discuss on highlights of GST passed in Lok sabha. In GST all taxes will be abolished and only two tax will be applicable Central GST and State GST. All the taxes relate to providing goods and services only will be covered in GST. taxes not relating to providing goods and services will not covered in GST.
Central GST passed in Lok sabha –
In central GST all the taxes currently levied by the central like excise duty, service tax. custom etc will be combine.
State GST passed in Lok sabha-
In State GST all the taxes currently levied by the state like VAT, CST, turnover tax, gift tax, Entertainment tax, lottery tax, Luxary tax etc will be combine.
Item not covered in GST –
Alchol and petroleum product will not be covered in GST, In that tax will be applicable as it is applicable now.
Benefits of GST to small business man –
Small business man whose gross turnover of the business is less than 1.5 crore are not liable to pay GST Central and State.
Credit structure in GST –
Input tax credit of central GST
An asseseee can claimed the Input tax credit of central GST against liability of central GST .
Input tax credit of state GST
An asseseee can claimed the Input tax credit of state GST against liability of state GST .
Input tax credit of central GST against state GST payable –
Input tax credit of central GST against state GST payable is not allowed except interstate sale.
Input tax credit of state GST against state central payable –
Input tax credit of state GST against state central payable not allowed except interstate sale.
How to check credit in GST –
Identification number based on pan card will be allocated to check the Central GST and state GST paid and input tax credit on Central GST and state GST.
Rate structure in GST
1 Standard rate for general items
2 Lower rate for necessary goods of consumer.
3 Special rate for specific goods like Tobacco
4 Export are fully exempt from GST
