What does Goods and service tax (GST) mean?
Goods and Services Tax (GST) has been introduced in India since July 1, 2017. A review of the massive changes in the Model Law on Goods and Services Tax (GST) is needed for all enterprises in India. This will include a thorough study of Goods & Services Tax, identifying changes to any long-term contracts, initiating tax code routing for all transactions, and reviewing existing compliance levels.
Who all are eligible for registration under Goods and Service Tax?
- The existing trader enrolled under the previous VAT / Service Tax / Excise or any other Act must complete the task of migration to Goods & Services Tax. A temporary registration number will be issued following migration. Within six months, the final approval will be issued.
- Companies involved in the export of products are also expected to complete the cycle of Goods & Products Tax Migration and receive a Goods & Services Tax Registration Number for sale of services outside India.
- In the case of inter-state sales, regardless of turnover, registration under Goods & Services Tax is obligatory.
What are the advantages of Goods and Service Registration?
- Each registered entity will receive a registration certificate as a supplier of goods or services.
- Goods & Services Tax's primary benefit is the simplicity of doing trade in India. You can earn 100% input tax credit for the purchase of goods from any of India's states.
- A registered company is legally authorized to collect tax on sales and pass tax credits payable on products sold to consumers or recipients.
What are the rates defined under Goods and Services Tax?
Goods and Services Tax rates will rely on the form of goods and services. The slab rates are currently 5%, 12%, 18% and 28%, respectively. The gold rate is 3% and 0.25% for rough stones.
Central Goods and Service (CGST) & State Goods and Service (SGST)
There are mainly three components of Goods & Services Tax i.e. a central component (Central Goods and Services Tax or CGST), a state component (State Goods and Services Tax or SGST) and for Inter-state transactions a Integrated Goods and Services Tax (IGST) component which will be levied by the center on the inter - state supplies.
Advisory Services related to Goods and Service Tax includes the following:
- Optimization of business model for trouble-free goods & services Compliance with tax
- Tax consulting on Input & Output of Goods & Services Tax
- Create and provide legislation on the pricing, enforcement and preparation of multi-jurisdictional goods and services
- Build restructuring of business
- Consultation on Consumer Relationship Management Consulting (CRM) programs in compliance with the Goods & Services Tax Act & Regulations.
- Developing the organization's political, economic and tax systems
- Development of government relations & management of compliance
- Support Companies with audits by government / Goods & Services Tax Authority