GST stands for Goods & Service Tax. Many countries have GST which is an indirect tax or consumption tax levied on the supply of goods and services. India has also replaced VAT with GST recently. This is a revolutionary tax plan that gives benefits to traders, consumers as well as the government bodies. Getting GST guide is necessary for every business.
The tax rules, rates, and regulations are governed by the GST council which is actually a group of finance ministers of all the states and centre. In India, Goods and Service Tax system was introduced in 2017 which was created a little dilemma among businesses. Gradually, people find it easy. The Indian government is constantly implementing the tax rules and regulations to make it favorable to the mass.
Input and Output Tax
The GST tax rate slab is impacted by input and output tax. It is necessary to understand the difference between the two.
Output tax is the tax which is charged to the customers for goods and services that a business sells them.
Input tax is the tax that is paid on your business purchases like imported goods and local purchases.
Who is liable to pay taxes under GST?
GST Rate Slab
Input and Output Tax
The GST tax rate slab is impacted by input and output tax. It is necessary to understand the difference between the two.
Output tax is the tax which is charged to the customers for goods and services that a business sells them.
Input tax is the tax that is paid on your business purchases like imported goods and local purchases.
Who is liable to pay taxes under GST?
If a person or a business that is liable to register under the law have to pay GST. On the supply of goods or services, the tax is paid by the person is considered forward charge of tax. Those who are receiving the supplies are considered the reverse charge of tax. The Indian government has made GST Registration in India easy. You can apply for your GST online.
GST Rate Slab
The GST council of India has divided GST tax into five tax slabs to collect the tax without any error- 0%, 5%, 12%, 18% and 28%. The highest 22% and 28% of tax are levied on a few items like aerated drinks, tobacco products, and luxury cars. The tax on gold is 3%. Many goods are in the range of 18% of the maximum tax. Standard-rated supplies have GST with a standard rate, nearly 6%.
Impact of GST Tax Rates
GST affects all people across the country. The middle class suffers more from it. Gradually, it is replacing all applicable indirect taxes. Some of the goods have heavy tax and some have light. Those with heavy tax are available at higher prices than those with low tax regime. Since the government is trying to implement the tax plan to make daily and necessary things affordable to people. We will have to keep an eye on the economy of our country to know whether the GST is benefiting our nation.
Impact of GST Tax Rates
GST affects all people across the country. The middle class suffers more from it. Gradually, it is replacing all applicable indirect taxes. Some of the goods have heavy tax and some have light. Those with heavy tax are available at higher prices than those with low tax regime. Since the government is trying to implement the tax plan to make daily and necessary things affordable to people. We will have to keep an eye on the economy of our country to know whether the GST is benefiting our nation.
