Taxation scheme Goods and Services Tax (India)

1 taxation scheme

1.1 taxes subsumed
1.2 hsn code in gst
1.3 rates

taxation scheme
taxes subsumed

the single gst(goods , service taxes) replaced several former taxes , levies included: central excise duty, services tax, additional customs duty, surcharges, state-level value added tax , octroi. other levies applicable on inter-state transportation of goods have been done away in gst regime. gst levied on transactions such sale, transfer, purchase, barter, lease, or import of goods and/or services. india adopted dual gst model, meaning taxation administered both union , state governments. transactions made within single state levied central gst (cgst) central government , state gst (sgst) state governments. inter-state transactions , imported goods or services, integrated gst (igst) levied central government. gst consumption-based tax, therefore, taxes paid state goods or services consumed not state in produced. igst complicates tax collection state governments disabling them collecting tax owed them directly central government. under previous system, state have deal single government in order collect tax revenue.

hsn code in gst

hsn (harmonized system of nomenclature) 8-digit code identifying applicable rate of gst on different products per cgst rules. if company has turnover rs. 1.5 crore in preceding financial year need not mention hsn code while supplying goods on invoices, if company has turnover more 1.5 cr 5 cr need mention 2 digit hsn code while supplying goods on invoices , if turnover cross 5 cr shall mention 4 digit hsn code on invoices.

rates

the gst imposed @ variable rates on variable items. rate of gst 2.5% soaps , 28% on washing detergents. gst on movie tickets based on slabs, 18% gst tickets cost less rs. 100 , 28% gst on tickets costing more rs.100 , 5% on readymade clothes. rate on under-construction property booking 12%. industries , products exempted government , remain untaxed under gst, such dairy products, products of milling industries, fresh vegetables & fruits, meat products, , other groceries , necessities.

checkposts across country abolished ensuring free , fast movement of goods.

the central government had proposed insulate revenues of states impact of gst, expectation in due course, gst levied on petroleum , petroleum products. central government had assured states of compensation revenue loss incurred them date of gst period of 5 years. however, no concrete laws have yet been made support such action. gst council adopted concept paper discouraging tinkering rates.