Different Types of GST in India

Passed by the Indian Parliament on March 29, 2017, the Goods and Service Tax known as GST which is an indirect tax for an entire nation which makes India a common united market by ensuring indirect taxes are replaced in the country.
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RAJKOT, India - Oct. 17, 2020 - PRLog -- GST is of great importance for both the Central and State governments as they rely on the GST for their indirect tax revenue. GST is a transparent tax system imposed on the supply of goods and services. When an item is bought, a common individual sees only the state taxes applicable to the product label and not the various tax components embedded in the product.

These tax are categorized into different GST slabs which are

1) Household items include 5% GST

2) Computers and Processed foods include a 12% GST

3) 28% includes in luxurious items

As different items include different GST rates same there are 4 different types of GST which are

1) State Goods and Services Tax- It is called SGST, it's a good service tax that is imposed for every state. SGST replaces every kind of existing state tax that includes Sales Tax, Entertainment Tax, VAT, Entry Tax, etc. Under SGST, the State Government can claim the earned revenue.

2) Central Goods and Service- GST is referred to as the Central Tax levied on transactions of goods and services which take place within a state. Imposed by the Central Government, CGST ensures to replace all other Central taxes inclusive of State Tax, CST, SAD, etc. Prices of goods and services under CGST are charged in accordance with the basic market price.

3) Integrated Goods and Service Tax- IGST is applied to the goods and services that are imported or distributed to different states. This tax is levied when there is a movement of tax from one state to another.

4) Union Territory Goods and Service- UTGS refers to a collection of the tax that provides benefits the same as SGST. UTGS tax is applicable to five Union Territories namely Lakshadweep, Daman and Diu, Dadra and Nagar Haveli, Andaman and Nicobar Islands, and Chandigarh.

Conclusion

GST has really made a unified tax system with easy input credits. As there are different types of GST the impact it affects different areas of the economy differently depending upon the sector you work in. It seems there will be a lower inventory cost which will be beneficial in the economy for the country.

For more info: https://bit.ly/3irY8wp

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