Question

What is GST and how is it implemented? Who is required to register for GST? What piece of legislation primarily governs GST?

Answer 1

Answer:

GST- GST is Goods & Services tax. It is an indirect tax. It is levied on supply on goods and services. Currently GST is applicable in India. GST is a single tax on the goods and services and other taxes are removed.

Implementation- GST is a destination based tax that is levied on the value addition so final consumer will bear the GST, charged by the last dealer. GST came into effect on July 1 2017 in India. This tax replaced many taxes in India. GST is one indirect tax in entire country. There are two taxes under GST-

Central GST (CGST)- Will be charged by central Government.

State GST (SGST)- Will be charged by state Government.

Rate of GST- Are as following:

• 5%
• 12%
• 18%
• 28%

GST Registration- Business whose turnover exceeds 40 Lacs (Rs. 10 lacs for North eastern and Hill station), required to register for GST.

GST was proposed in 1999 in India but ca,e in effect in 2017. GST is governed by GST Council. GST Council is a key decision making body that takes all important decisions of GST. Article 279 (1) of the amended Indian Constitution states that the GST council has to be constituted by the president within 60 days of the commencement of the Article 279 A.