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GST TAX stands for “Goods and Service Tax”. GST Tax system is one of the most ambitious and biggest tax reform brought forward by the Government of India in recent times. New GST Tax system aims to streamline the tax flow throughout the country. The Government is positive that it will bring transparency in the tax structure. This new “Service Tax” attempts to abolish complex tax structure and place a simple and straight forward duty system. GST will bring smaller business in to the tax system, which until now were not properly integrated in to the taxation structure. GST is set to bring “One Country, One Tax” service tax system. Threshold for exemption of tax is Rs. 20 lacs and for Rs. 10 lac for special category states. Main feature of GST Bill: It applies, “Tax on SUPPLY OF GOODS OR SERVICE rather than manufacture / production of goods, provision of services or sale of goods”. GST in India is an indirect tax. Both the Central government and state government will administrate the taxation system as this is a dual GST model.
India is not known world over for its taxation system. Indian Tax system is very complex and not many understand it properly. Even businessmen who are into business from long times have to take the advice of Chartered accountants regarding their tax queries. The idea of “India GST” duty system was developed to smoothen the service tax process in India. Another reason “India GST” become necessary was because a significantly large number of businesses in India were not properly filling their service taxes and the Country faced huge financial losses due to such loop holed tax system. India GST comes under Central Board of Excise and customs which falls under Department of Revenue under the Ministry of Finance, Government of India.
Many business house and chambers were pushing the government to implement the GST system from September 2017, but the government has declined their proposal and now the GST will be implemented from 1st July 2017. There will be a special midnight assembly in the Central Hall of the Indian Parliament to honour the occasion. 1st July 2017 will be observed as “GST Day”.
It is very important to know the GST Rates on different services and goods. According to the new GST levy system it is divided into two parts, GST rates of Goods and GST Rates of Services. GST rate schedule for goods are decided from 5% to 28%. The GST rate of services also varies from 5% to 28%. There are certain goods and services that are exempted from the tax. There are many luxury items that attract extra cess after 28% Tax. There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold. Some items that fall under 0% GST rates are daily consumption items like fruits, vegetables, eggs, chicken, fish, fresh meat, curd, butter milk, milk, natural honey & curd etc.
GST in India is a new concept, people in India are still learning all the aspects of GST, but it is expected that GST in India will change the face of Indian Taxations system. Once GST in India is completely implemented, we will see its full benefits. The industry experts expect that in the beginning GST in India will increase inflation but in long run it will be most beneficial in the interest of country.
Before the implementation of GST Law many e-commerce websites including winsant.com have introduced “Pre GST Sale” with reduced prices. During this Pre GST sale special discount was offered on entire product range. This Pre GST clearance sale is a great idea to provide the best discounted offer to buyers and simultaneously increase the awareness of GST in consumers.
While most experts say that the rates of textile produces will remain more or less same, Textile business owners claim that it will increase the rates significantly, as new taxes are levied on “Job Workers” which was previously not there.
Mobile phone is one electronic accessory that has become a necessity. Most of the people nowadays cannot live without their mobile phones so it necessary to know what effects will GST bring on cell phones and cell phone bills. It is believed that your mobile billing will become costly from previous months as the Goods and Service Tax Council (GSTN) has put Telecom sector under 18% Tax slab whereas previously it was 15%. So there is 3% increase in mobile phone bill. The new GST rates on Mobile phones are decided at 12%. This means that newer phone models will become costly, but smartphone manufactures have informed that they will not increase the prices of existing models and bear the cost.
Indian’s love for gold is known all over the world. Gold is the favourite precious metal of Indians. So if you want to know what effect the new GST bill will have on gold rates here is the explanation. Well according to new GST rates gold will become cheaper in Kerala and it will be costlier across rest of India. The duties on gold at present is around 2% in most states, including of 1% of excise duty and 1% of VAT in most States, in Kerala it is 5%. So, there will be slight increase in gold price for rest of India while new rate of 3% will make keralites happy (A reduction of 2% from previous 5%).
What effect will the new GST bill have if you are planning to buy TV, Fridge, AC, Washing machine etc. electronics items? Well you will have to shed some extra money post the GST Bill 2017 to buy electronic items. The new prices are expected to be 4% higher than current prices. Earlier the cumulative Tax on such items ranged from 23% to 28%, now as per the new GST Bill 2017 the tax rate on such items is fixed to 28%.
You can search for your Goods and Service Tax related queries here on the official website https://www.gst.gov.in/
There is a step by step guide to registration and login on the official Government GST website https://reg.gst.gov.in/registration/ there is an easy illustrated guide that anyone can follow.
As per the government notification the sellers are required to update their GST number. We have created YouTube video which can be found here; in it we have explained how you can update your GST on winsant.com
Publisher Winsant Stories, Author Winsant Team on 2017-07-01