GST Returns, Types of GST Returns, New GST Returns & Forms, Sahaj GST Returns, Sugam GST Returns, GSTR 1, GSTR 2, GSTR 3B, GSTR 4, GSTR 5, GSTR 5A, GSTR 6, GSTR 7, GSTR 8, GSTR 9, GSTR 10, GSTR 11 If A provides service to B and if A and B are located into Maharashtra (i.e in the same state) than SGST is charged on the goods. This leads us to an important concept in GST - Time, Place, and Value of Supply of goods and services. For example – A person in Gujarat sells the goods to a person in Rajasthan and therefore handover to the transport company to deliver in Rajasthan. • Service tax-Subsumed Tax used to charge on sale of product (CST/VAT), in excise law excise duty used to charged on the manufacturing. • Entertainment tax A registered person needs to pay the difference of GST on sales and GST on purchases made in a month. Additional Read  – Why there is a need for 3 types of GST – CGST, SGST & IGST. Therefore, the place of supply is Rajasthan and it is an inter-state sales. He had also paid a bill of internet of Rs. For e.g. Capital goods are those goods which you had NOT purchased for the purpose of reselling. Taxable event is supply. To help you understand the concept of Inverted Duty Structure, the following is an example where GST on raw pulp (input) is higher than the GST rate on a paper bag (output). 2. The tax is levied on goods and services sold within India’s domestic boundary for consumption. There are certain limitations and restrictions on taking the input tax credit. Any person who holds position under constitutions explained with an example GST is a single tax on the supply of goods and services. The Goods and service tax act was passed in the parliament on 29th May,2017. SGST goes to the state where it is consumed. III. Jammu & Kashmir Company is required register within 30 days from the date of starting business. Supply may be Interstate or Intra state. Lakshadweep • Supply is made in the furtherance of business. Example. apply to goods. Ladakh Why there is a need for 3 types of GST – CGST, SGST & IGST, Pre-validate Bank Account on Income Tax e-Filing Portal, Save Yourself from Clubbing Provisions for the Gifts Made in Cash, Intra-state (i.e. The concept of Input Service Distributor (ISD) was present under the Service Tax regime also before the introduction of GST. Composite Supply: The composite supply under GST section means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or supplied in a combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. This is to avoid cascading effect of tax. Rate of CGST is same as on SGST. VII. A is an importer and B is a Custom Broker. Hence, GST is payable on the goods purchased and services availed. The cost of GST is borne by the final consumer, who can’t claim GST credits, i.e. 2,500 at the rate of 5%. V. Actionable claim (Excluding Betting/Gambling and lottery). There is also a Cess which is applicable only on a handful of goods like car, tobacco, pan masala. Person who are registered under Excise, Service, VAT and CST are required to register under GST. Chandigarh VI. Registered GST person cannot move goods without generating E-will goods, if goods value supplied is greater than Rs. Subscribe to our weekly newsletter and get updates in your email. How to Calculate Common Credit (ITC) under GST? • VAT-Subsumed IV. Earlier, the customer paid both VAT and service tax on a single bill, but after GST there is single tax charged on the bill amount. IGST is the connecting link, a bridge between the states to pass on the input tax credit to another state. Sale: Transfer of ownership of goods or product. Now in new concepts of GST, it becomes easy to claim ITC.In an old regime it is not possible to claim ITC for … Professional Course, Online Excel Course GST Concepts and Principles 3 Scope of GST The scope of GST is provided for under Section 7 of the GST Act. Check GST return status of your client’s or suppliers using GSTIN. Most of the goods fall in the category of 5%, 12% and 18%, while most of the services fall in the category of 18%. Person who carries business in the India and turnover of business which he is carrying is more than Rs. GST Rates & Charges. When E-way bill is generated unique E-way bill number is generated. Limited Period Offer Avail 20% discount in all subjects CA,CS and CMA,Coupon- OFFER20 Call: 088803-20003, Aniruddha Deshpande  Calculation of GST Amount payable to Government As we have seen in the CGST, IGST, SGST and in the UGST that taxes are charged according to the destination from which person has supplied goods and service. But learning more about GST, first learn what does GST stands for. Meaning of Furtherance of Business under GST: Is the activity, a serious undertaking earnestly pursued? Government Fees (such as MCA fees, land registration fees etc. To registered under GST, person needs to hold PAN. For example, A person made intra-state sales of Rs. The main reason to introduce GST was to eliminate cascading effect which was they’re in the previous tax structure. • Supply is made towards consideration GST is calculated on the transaction amount and not on the MRP. The said act was passed in the parliament and came into the effect from 1st July,2017. TCS Rate chart: What are the applicable TCS rates for FY 2021-22 (AY 2022-23)? Transaction made by Mr. X from Uttar Pradesh to Mr. Y who is also located in the Uttar Pradesh than CGST+SGST is charged. Goods and Service Tax (GST) is applicable in India from 1st July 2017. Pondicherry. When the location of the supplier and place of supply is the same state/union territory, then it is considered as Intra-state sales, if they are different then it is considered as inter-state sales. 2. In India there are total 9 union territories. III. 2. Professional Course, India's largest network for finance professionals. By blogadmin | On December 20, 2020 Q 1. The incidence of tax will follow the destination principle i.e. Hence UGST is charged when transaction is made with in two union territories. Now the question arises: What is a place of supply? sale within the same state). If Person has multiple branches in the different states than person is required to register in all states in which company holds business. Still has a question? Full Form of GST. 1. It was quite successful mechanism under which government keeps trails of transaction and it also leads to early generation of revenue to the government. Transfer: Transfer of goods/product without title NOTE - You may get answer to free queries within 30 working days, Practice Management Software For CA/Tax Professionals, GST Return Status Bulk Checker for CA/Businesses, GST Payment and Input Tax Credit Calculator, TDS Return – Due Date & Penalty Calculator, Depreciation Calculator As Per Income Tax Act, Depreciation Calculator – Companies Act 2013, HRA Calculator – Monthly & Yearly Calculations, Average Monthly/Quarterly Balance Calculator. For example, if supply of good or service requires to charge total 18% GST than the same divided into equal proportion and 9% of the amount of supply of Goods and services are charged as CGST and rest 9% amount is charged as SGST. 8. When goods/service is supplied with in same state i.e. ... Part 1 in reference to Basic Concepts of GST is an excellent way to share the real concepts proposed in GST. A dealer in Mumbai makes a sale to a dealer in Delhi. 4,180 is allowed as a deduction from the Gross tax payable of Rs. In GST Concepts. What is the concept of Input Service Distributor under GST with Example. • Sponsorship services For example if Maharashtra states supplies goods/service to the Rajasthan state then dealer from Maharashtra will charge GST to Rajasthan and to the central government in the equal proportion and Rajasthan state will be eligible to take credit against the GST charged by Maharashtra state and not the Maharashtra state. 50,000/- E-way bill can be generated through SMS, Android App. ), Central GST (CGST) – levied by central government, State GST (SGST) – levied by a state government, Integrated GST (IGST) – levied by the Central government on an inter-state supply of goods and services, 0% (necessity items like milk, wheat flour), Single indirect tax for the whole of India, Input tax credit can be taken for taxes paid in another state, Easy transfer of goods from one state to another. 3. Exchange: Swap or transfer for equivalent money against. 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