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GSTIN: A Comprehensive Guide to GST New Law

A new tax reform regime was introduced in India known as the Goods and Services Tax (GST). The law came into effect from 1st of July, 2017. With a view to bringing uniformity in indirect taxation across the country, the government of India had earlier proposed to integrate central excise and VAT and also to have a common indirect tax structure. The new law is designed to simplify procedures while also eradicating tax evasion by checking cascading effects. In this article, you will learn about all key aspects related to GST in India: why was it introduced, what are the implications of New Law on trade and businesses, how will it be implemented and much more

  

What is GST in India?

 

GST in India is a system of indirect tax which is levied on goods and services at the rate of central excise and service tax. It will be implemented from 1st of July, 2017. It is an indirect tax, which is levied on the sale of goods and services at the rate of GST (11% for inter-state sale and 17% for inter-state supply). As per new GST law in India, all the commercial and non-commercial activities are covered. It means that all the services are included in GST. For example, the services provided to a company by its employees will be included in the ambit of GST.

 

Legal Framework of GST in India

 

GST in India is governed under the Goods and Services Tax Act, 2017, which is the central law of India for implementation of the new tax system. The Act provides for constitution, powers and responsibilities of the Central government and the State governments. It will be implemented in the form of a combination of a central law and state laws. Under this new tax law, there are certain responsibilities of the commercial and non-commercial entities. From 1st of July, 2017, all the commercial and non-commercial activities will be included in the GST.

 

Benefits of GST in India

 

GST in India has brought a lot of benefits to the citizens of the country. Some of the main benefits of GST in India are as follows:

Simpler GST Registration Procedures - The government has taken many pains to make the GST registration procedures simpler. The required documents are to be submitted online and there will be no application fees for registration. Earlier, the same documents had to be submitted in physical form along with a fee payable at the various government offices. Also, there will be no need to visit the various offices for applying for registration or to get the tax clearance.

- The government has taken many pains to make the GST registration procedures simpler. The required documents are to be submitted online and there will be no application fees for registration. Earlier, the same documents had to be submitted in physical form along with a fee payable at the various government offices. Also, there will be no need to visit the various offices for applying for registration or to get the tax clearance. Faster and More Efficient Delivery of Goods and Services.

- The introduction of GST in India is expected to make the whole process of delivery of goods and services much faster and efficient. While applying for registration and getting the tax clearance will be much simpler than earlier. Also, service providers are expected to enjoy faster delivery of their goods and services.

- The introduction of GST in India is expected to make the whole process of delivery of goods and services much faster and efficient. While applying for registration and getting the tax clearance will be much simpler than earlier. Also, service providers are expected to enjoy faster delivery of their goods and services. Lower Prices of Goods and Services

- With the implementation of GST, there is a likelihood of lower prices of goods and services. The basic reason for this is that the supply chain of businesses gets simplified and costs are being brought down.

 

Implementation of GST in India?

 

GST in India is implemented through a common registration and taxation platform. All the businesses and sellers of goods and services are registered under GST. The registration has to be done through a government authorized online portal. It has to be done for both, for inter-state and intra-state trade. Besides registration, the compliance of GST will be also monitored through the same portal. The registration under GST is absolutely free. The compliance under GST will be monitored through GST Network. Once the registration is done, the business has to comply with the GST law as per the provisions of the Act. The controller of GST Act is Comptroller and Auditor General (CAG).

 

Key takeaways

 

GST in India is a new tax law that will be implemented in the country. It is a single tax levied on goods and services at the rate of GST. All the commercial and non-commercial activities are covered under GST framework.

 

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