Gst full form or what is full form of gst ?
Gst full form is goods and services tax. it is the biggest reform in indirect taxes since 1947. now, the question that was in you mind ” what is full form of gst ? ” has cleared. after knowing gst full form , let talk about the main objective of implementing GST Tax. Idea behind implementing the gst tax is to transform India into a uniform tax system which eradicated the tax barrier between the states.
Till now, in India we have dual structure of tax i.e. Central tax and state tax but after implementation of GST, we have a single tax bracket in the country. Lets have a look on what is GST taxation system in India.
What is gst taxation system in India?- gst full form :
Gst is a latest indirect tax in India that is classified into sub 3 categories.
1. SGST- sgst full form is state goods and services tax. Consumer have to pay sgst tax if they sell and buy goods within the estate.
2. CGST: cgst full form is central goods and services tax.
Example: if Narender who lives in Delhi sells goods to Ravi worth rupees of 10000 rs ( Ravi also lives in Delhi). Here gst rate is 18% where 9 % is sgst and 9% is cgst. Then calculation of sgst and cgst will be following:
Dealer will collect 1900 rs gst tax where 800 rs goes to central government and 900 goes to Maharashtra state government.
3.IGST: IGST full form is integrated goods and services tax. It is applicatble on inter estate supply of goods and services. Here, goods and services are not consumed where it is manufactured (state).
Example: if ravi in Maharastra sold goods to Mohan in Gujarat worth rupees of 1,00,000, then dealer has to charge 18% gst (18000 rupees) where 9% is CGST (9000 rupees) and 9% is IGST (9000 rupees). Both tax amount (18000 rupees) tax will go to central government.
what is gst tax rates in India?
after know the gst full form, lets talk about rate of gst tax in india. As you know gst is applicable in india after 1 july, 2017. so, it becomes so important for accountant and company to know about latest gst rates in india for services industry or other goods. so that, they can do accounting work as per new taxation procedure. gst cousin had held meeting on 18 may, 2017 for finalizing the new tax gst rates. in this meeting, they have finalized the following gst rates in india. please find below gst tax rate list in india.
what is GST tax rates on goods:
the tax rates on commodities are different under gst tax scheme. you can see some product like cement has highest gst tax rate around 28%. on the other hand, some product like cotton has lower gst tax rate around 5%. it mean that it depends on the product that decide tax rate.
|FMCG goods like hair oil, soaps,Shampoos, toothpaste and chemical and industrial use intermediaries||18%|
|Ayurvedic, homeopathy medicines||12%|
|Chocolates, chewing gum||28%|
|Cigarettes||28% + 5% cess|
|common used consumption food items such as spices, tea, coffee, mustard oil, sugar, vegetable, coal and Indian sweets||NIL|
|Cotton and natural fibre||5%|
|milk, rice, wheat,cereals, fruits, vegetable, gur or jaggery , food grains,||NIL|
|Footwear < Rs. 500||18%|
|Footwear = Rs. 500||5%|
|Fruit juices, butter, cheese, meets||12%|
|Gold, diamonds, Silver||3%|
|bikes, private jets, Luxury yachts||31%|
|electrinic toys, LPG stoves and military weapon||18%|
|tobacco, pan masala||28% + cess|
|Luxury cars||28% + 15% cess|
|fibre and yarn||18%|
|pickles, tomato sauce,fruid preserve, sauce etc.||12%|
|Pastries, pasta, soupescakes, ice cream||18%|
|Pharma -first aid drug||5%|
|Silk or jute fibre||NIL|
|Small cars ( diesel driven)||28% + 5% cess|
|Small cars (petrol driven)||28% + 1% cess|
|TV,soft drinks, washing machine, refrigerator, microwave ovens; soft drinks and ac etc.||28%|
What is GST tax rates for service industries:
the current gst rate is announce in india. we have found that gst rates is different for different commodities.
the following is the list of gst tax tare for service industries where you will see that some services have tax rates of 18% and other have other tax rates.
|5 star hotels||28%|
|AC restaurants with liquor license||18%|
|Airlines (Business class)||18%|
|Cab service – Ola, Uber||5%|
|Hotel room tariff — Rs. 2,500 – 5,000||18%|
|Hotels with tariff– Rs. 1,000 – 2,500||12%|
|Movie tickets < Rs. 100||28%|
|Movie tickets > Rs. 100||18%|
|Non AC restaurants||12%|
|all industries that deels in gems, textiles and jeweller||5%|
|Real estate – Work contracts||12%|
|Restaurants whose annual turnover is less than Rs. 50 lakhs||5%|
|Sleeper, passes, metro tickets||NIL|
|Telecom industries and financial service||18%|
Latest update about gst dated 03-07-2017:
the following are the latest updated about gst in india. you can also send some update and usefull information by commenting.
Gst return form in india – gst full form:
if you are looking for gst return form number for filing you company return, then following information is useful for you. there are 5 form under gst tax 2017.
these information is very helpful for accountant and CA.
|GSTR 1||OUTWARD SUPPLY||10th of next month|
|GSTR 2||INWARD SUPPLY||15th of next month|
|GSTR 3||Monthly Return||20th of next month|
|GSTR 8||Annual Return||31st of next month|
|GSTR 4||Quarterly Return||18th of next month of quarter|
Can we explain gst in india with example:
If you are looking for easiest way to learn about gst calculation, then you are right place. here we are going to show you simple and easy example of gst tax calculation in india. you can use this gst calculation formula.
GST Example 1 = Manufacture to Wholesaler :
|Particulars||Without GST ( In Rupees)||With GST (Rupees)|
|Cost of Production||5,000.00||5,000.00|
|Add: Profit Margin||3,000.00||3,000.00|
|Add: Excise Duty @ 12%||960||0|
|Total Value for seller A||8,960.00||8,000.00|
|Add: VAT @ 12.5%||1120||–|
|Add: CGST @ 12%||–||960|
|Add: SGST @ 12%||–||840|
|Total Invoice Value for manufacturer||10,080.00||9,800.00|
GST example 2: Wholesaler to Retailer:
|Particulars||Without GST ( In Rupees)||With GST (Rupees)|
|Cost of goods to Wholesaler For retailer A||8,960.00||8,000.00|
|Add: Profit Margin@10%||896||800|
|Total Value For Retailer B||9,856.00||8,800.00|
|Add: VAT @ 12.5%||1,232.00||–|
|Add: CGST @ 12%||–||1056|
|Add: SGST @ 12%||–||1056|
|Invoice Value for retailer A||11,088.00||10,912.00|
Gst example 3 – Retailer to Consumer:
|Particulars||Without GST ( In Rupees)||With GST (Rupees)|
|Cost of goods for Retailer B||9,856.00||8,800.00|
|Add: Profit Margin (10%)||985.6||880|
|Total Value for seller C||10,841.60||9,680.00|
|Add: VAT @ 12.5%||1,355.20||–|
|Add: CGST @ 12%||–||1,161.60|
|Add: SGST @ 12%||–||1,161.60|
|Total Price of goods to the Final consumer||12,196.80||12,003.20|
|Cost saving to consumer (in rupees)||–||193.60|
|Percentage of Cost Saving for consumer||–||1.6|
ACCOUNTING ENTRIES FOR GST IN TALLY SOFTWARE:
If you are looking for gst accounting entries in tally software, then you are right place. Here we are going to tell you detail information about how can you do accounting entries in tally software or treatment of gst.
Here, we are assuming CGST @8% and SGST@8%
Gst Tax calculationg Example 1: mr. a purchases goods of 10000 rupees locally ( in state).
The accounting entries will be below for this transaction.
Purchase account – dr. 10000
Input CGST -dr 800
Input SGST -dr 800
To Creditors 11600
Gst Tax Example 2: if mr. A sold goods to mr. B for 15000 rupees within the state.
|Debtors Account – Dr.||17400|
|To Sales Account||1,50,00|
|To Output CGST Account||12,00|
|To Output SGST Account||12,00|
Gst Tax Example 3: He paid legal fees of Rs. 5,00.
|Legal fees Account – Dr.||5,00|
|Input CGST Account – Dr.||40|
|Input SGST Account Dr.||40|
|To Bank Account –Cr||5,80|
Gst Tax example 4 : He purchased some office furniture for Rs. 12,00
|Furniture Account – Dr.||12,00|
|Input CGST Account – Dr.||960|
|Input SGST Account – Dr.||960|
|To xyz Furniture Account||13,92|
Frequently asked question answer about gst in india:
1. Are you liable to pay gst tax?
Business and companies whose total turnover sale is exceeding 20 lakhs per year are liable to pay gst. But if you live in special category state and north region, then the threshold limit change into 10 lakhs per year.
2. What is input tax credit in gst?
The input tax credit is the amount that can be adjusted towards output gst tax amount. It is just like input and output tax adjustment.
Example: if you have paid 10000 rupees as output gst and your input gst on purchases are 6000 rupees. Then, net gst payable will be = 10000- 6000 = 4000 rupees.
The formula of gst tax calculation = Output GST – Input GST.
3.What are the existing taxes that are subsumed into gst?
All the indirect tax like vat, service tax, custom etc have subsumed into gst tax. Now you will see only one indirect tax across the India.
4.What are the main benefit of gst?
One other the biggest advantage of application is gst is transparency on taxes. At present, if a consumer purchase any goods then he see only see the taxation part of estate level. But after application of gst, consumer can see the whole taxation part whether it from estate level or central level. Gst will crease ease to do business that will make entry level more effective. This new tax system are expected to bring growth in GDP around 2 to 3%. There are many item in which tax burden will remove.
5.What is gst tax rate on import or export of goods in India?
If you are deeling in importing of product, the you have to pay IGST (integrated goods and services tax). There is no tax at Exporting of goods. Even you will get refund if you spend money on raw material and services.
6.What is the anti- profiteering scheme or mechanism in gst?
Anti-profiteering mechanism is the clause in gst that ensure the reduced tax burden passed to customer or consumer. It also prevent increase in price of goods and services. The anti- profiteerimg group will also apply some strategy for protecting consumer.
7.What are the authority behind gst decision? Or who takes decision regarding gst taxation in India?
Decision is taken by voting of union and estate member. Decision is taken by 75% weighted votes with majority.
8.What is input credit in goods and services tax(GST).
Input credit is the tax amount that can be adjusted toward output gat tax. There is a formula and adjustment entry of gst input and output tax which are as below:
Output gst account.. Dr
To input gst account.. Cr
To gst payable account..Cr
Gst calculation formula :
Gst payable = output gst – input gst
This gst calculation formula as as simple as vat calculation formula. You have to adjust input gst tax asamount toward output gst tax amount. If outpatient gat tax amount is eccess, then the remaining balance amount will be gst taxable amount. If input gst tax is more than output gst tax amount , the excess balance over output gst tax amount will be refundable.
Find out how Only end consumer is the looser after implementation of gst bill?
Our bjp government giving argument that gst bill is the way through which we can stop corruption, generate revenue for the government which in turn increase the inflation in india which ultimately loose the packets of end user. Secondly, after implementation of gst bill everyone comes into the bracket who are not into the tax bracket like panwallah, chaiwallah etc.
Third, states are the main looser of revenue as they are giving their rights to the center by surrendering 17 to 18 taxes for gst. Suppose if the state is earning 20 percent revenue from local services, then states has to share 10 per cent of revenue with central government. This is the one reason why jayalalitha’s aiadmk walked out of the rajya sabha.
Currently, matter is still unclear about the state tax and central tax, what is the percentage of one tax that will implement across one nation. One thing is clear that any person who is providing any type of services or supplying goods is liable to charge gst. It is a consumption based tax which levies on goods and services at the place where final consumption took place.
The current taxes like excise duty, services tax, custom duty etc will be merged under cgst. The taxes like sales tax, entertainment tax, vat and other state taxes will be levied as sgst.
What is gst tax rate in india?
It is not finally decided yet, it is believed by the market expert that taxes will be categorized as per the importance of goods on consumption priority basis.
What is benefit of gst bill?
- The entire Indian tax system will be uniformed into a single tax system which may translate into lower business cost as it was expected. It will reduced the or eliminate the various inter-state tax.
- The tax structure will be simple.
- Export oriented companies are the main beneficiary of gst bill as it is not applied on goods and services which are exported out of india.
- The suppliers, manufacturers, wholesalers and retailers are able to recover gst incurred on input costs as tax credits. This reduces the cost of doing business.
- Lower tax burden could translate into lower prices on goods for consumers. But, on the contrary side it will make several thing costly like, restaurants bills, mobile bills etc.
- Number of tax departments will reduce which in turn may lead to less corruption.
- Unorganized sector in india will come under tax regime.
- Most small business comes into the tax regime which will not cover under current scenario. It will increase the revenue for the government.
What is next? gst detail information – updated – 13-08-2017
Gst bill passes in rajya sabha. Currently, gst council is deliberately working upon the exact gst rate, which will be ratified by the states. The final and actual gst bill will likely be taken up in winter season of the parliament.
Get tax rates slab for the financial year april 2017 to march 2018. ( assessment year 2018 to 2019) – Gst full form:
Gst rate structure have been finalizes, fixed rate of 5%, 12%, 18% and 28% in India. it is biggest news that tax rate for get have been finalized. the final implementation date is 1 july, so that companies can implement it in their taxation system.there is one downfall in gst tax implementing, the goods in which higher tax is imposed can be ignored by the buyer, because they have to pay more tax on those kind of goods. that is why government is trying to solve this problem. it is assumption by big tax analytics that government may cut down some percent rate from high tax slab.
example: government can consider to refuse the tax amount on luxurious item from 28% to 26%.the higher tax rate may dis-motivate those industries have which high tax is implemented.
Key point of gst tax implement action in India – gst full form:
– government have given deadline time to July 1 for gst implementation.
-gst rate structure will be in 4 categories. rate will be most probably 5% , 12% , 18%and 24%.
– if your company is situated in Delhi, then you can login Delhi value added (Dvat) site for apply your get number.
– all the information like new password and login I’d of gst registration will receive on dvat site.
– if you have 2 service tax number. in this case, you will received your company new get login I’d and password on your active service tax registration number. for that, you have to login in you active ST account and get the password and Id for gst.
-it is consider that all the tax filing procedure will be remain same for reducing the complexity of new tax implementation.
-get is a indirect tax that is application India after 1 July 2017.
– mostly country gave around 3 months to 1 year to its citizens for prepare for gst.
– is is proper to levy 4% get on gold product s.
– a higher tax rate of 40% may be implemented in state like Kerala.
– gst is one of the big changes in India tax structure after 1947.
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