The  Government of India passed four sets of GST Acts in the budget session of 2017. These were the Central GST Act, 2017; the State GST Act, 2017; the Integrated GST Act, 2017 and the Union Territory GST Act, 2017. These Acts were introduced as a part of the Money Bill and were approved by the Parliament. This article will help you have a basic understanding of GST, its benefits and its effects on your day to day life.

What is GST?

GST has been one of the biggest tax reforms in India. It is one Indirect Tax that is levied on the supply of goods and services in the country. It is a single indirect tax for the whole country that has entailed other taxes like Central Excise, Service Tax Law, VAT, Entry Tax, Octroi and more.

It is aimed towards bringing together state economies of the whole country and improve the overall economic outlook of the country.

This indirect tax has been levied on manufacture, sale and consumption of goods and services at the national level. It has replaced all indirect taxes on goods and services by Central and State governments. This new tax regime has made it mandatory for every business person in India to obtain a GST Identification Number in every state they are registered. Besides having access to a knowledge base for GST, it is important to have a good GST calculator in India.

There are about 160 countries in the world that have GST in their taxation system. It has been implemented in India from July 1, 2017. It works on dual GST model in which both Centre and States levy tax on Goods and Services. Here are the formats of GST in India:

SGST – State GST

Under this GST format, the tax is collected by the State Government.

CGST – Central GST

Under this format, the tax is collected by the Central Government.

IGST – Integrated GST

Under this format, the tax is collected by the Central Government.

UTGST – Union territory GST

Under this format, the tax is collected by the Central  Government.

Introduction of GST in India

The implementation of GST in India is considered a significant step in the reform of indirect taxation in India. Integration of various Central and State taxes has diminished various issues like double taxation, cascading effects of taxes, classification of taxes, the multiplicity of taxes and a lot more. This has eventually paved the way for the formation of a common national market.

In the previous taxation system, VAT rates and regulations differed from state to state. With the coming of GST, these taxes have been merged into one uniform tax system across all Indian states. The taxes obtained here is shared between the Central and the State government. To make GST calculation simple and easy, you can use the “GST calculator in India”.

We hope you found this post useful and informative. If you have any queries or suggestions related to this post, please drop your comments in the comment section below.  We would be glad to help you out. To show your support, share this post with your friends on Social media and elsewhere.

Thank you very much for reading!