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Good And Service Tax ( GST ) – Frequently Asked Fourteen Questions

GST Frequently Asked Questions  : GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.

GST Frequently Asked Questions : Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

Good And Service Tax ( GST ) – Frequently Asked Fourteen Questions

GST Frequently Asked Questions : Any person who makes a taxable supply for business purposes and the GST exclusive value of the taxable turnover of that supply for a period of 12 months or less exceeds the threshold of RM500, 000 is required to be registered for GST. However, businesses with taxable turnover of RM500, 000 and below, even though not required to be registered, may choose to apply for voluntary registration. 2. What is a taxable

Good And Service Tax ( GST ) – Frequently Asked Fourteen Questions

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GST Frequently Asked Questions : Press Information Bureau  Government of India Ministry of Finance they issued a set of frequently asked questions (FAQs) relating to the Goods and Services Tax (GST) in which a total of 14 queries have been answered. The notification includes questions pertaining to the implementation of the GST, how it would be administered, its benefits, and the taxes subsumed under it, among others. These Fourteen Questions with answer are ;

Question 1. What is GST? How does it work?

Answer: GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the suppl

 Question 2. What are the benefits of GST?

 AnswerThe benefits of GST can be summarised as under:

    1 ) For business and industry

  •  Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India.
  • Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country.
  • Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States.

     2) For Central and State Governments

  • Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST.
  •  Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure.
  •  Higher revenue efficiency: GST is expected to decrease the cost of collection of tax revenues of the Government.

    3) For the consumer

  • Single and transparent tax proportionate to the value of goods and services: Due to multiple indirect taxes being levied by the Centre and State.
  • Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down.

Question 3.  Which taxes at the Centre and State level are being subsumed into GST?

Answer: 

Central level State level
Central Excise Duty. Subsuming of State Value Added Tax/Sales Tax.
Additional Excise Duty. Entertainment Tax (other than the tax levied b Central Sales Tax (levied by the Centre and collected by the States).
Service Tax. Octroi and Entry tax.
Additional Customs Duty commonly known as Countervailing Duty. Purchase Tax.
Special Additional Duty of Customs.  Luxury tax,Taxes on lottery, betting and gambling

 Question 4.  What are the major chronological events that have led to the introduction of GST?

Answer:

GST Frequently Asked Questions : GST is being introduced in the country after a 13 year long journey since it was first discussed in the report of the Kelkar Task Force on indirect taxes. A brief chronology outlining the major milestones on the proposal for introduction of GST in India is as follows:

  1. In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST) based on VAT principle.
  2. A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.
  3. Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC).
  4. Based on inputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.

Question 5.How would GST be administered in India?

Answer: Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State.

Question 6.How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?

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 Answer :

GST Frequently Asked Questions: The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise.

A diagrammatic representation of the working of the Dual GST model within a State is sown in Figure 1 below.

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Question 7.Will cross utilisation of credits between goods and services be allowed under GST regime?

 Answer : Cross utilisation of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilisation of credit will be available in case of SGST. However, the cross utilisation of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question.

Question 8.How will be Inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method?

Answer:

GST Frequently Asked Questions: In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State. A diagrammatic representation of the working of the IGST model for inter-State transactions is shown in;

i20168302

Question  9.How will IT be used for the implementation of GST?

 Answer :

GST Frequently Asked Questions : For the implementation of GST in the country, the Central and State Governments have jointly registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government Company to provide shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders. The key objectives of GSTN are to provide a standard and uniform interface to the taxpayers, and shared infrastructure and services to Central and State/UT governments.

Question 10.How will imports be taxed under GST?

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AnswerThe Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.

Question 11.What are the major features of the Constitution (122nd Amendment) Bill, 2014?

 AnswerThe salient features of the Bill are as follows:

  1. Conferring simultaneous power upon Parliament and the State Legislatures to make laws governing GST.
  2. Subsuming of various Central indirect taxes and levies such as Central Excise Duty, Additional Excise Duties and ect.
  3. Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies).
  4. Dispensing with the concept of ‘declared goods of special importance’ under the Constitution.

Question 12.What are the major features of the proposed registration procedures under GST?

Answer: The major features of the proposed registration procedures under GST are as follows:

  •  The registration number will be PAN based and will serve the purpose for Centre and State.
  • New dealers: Single application to be filed online for registration under GST.
  • Existing dealers: Existing VAT/Central excise/Service Tax payers will not have to apply afresh for registration under GST.
  • Unified application to both tax authorities.
  • Each dealer to be given unique ID GSTIN and ect.

Question 13.What are the major features of the proposed reurns filing procedures under GST?

Answer: The major features of the proposed returns filing procedures under GST are as follows:

  • Common return would serve the purpose of both Centre and State Government.
  • There are eight forms provided for in the GST business processes for filing for returns.
  • Small taxpayers: Small taxpayers who have opted composition scheme shall have to file return on quarterly basis.
  • Filing of returns shall be completely online. All taxes can also be paid online.

Question 14.What are the major features of the proposed payment procedures under GST ?

Answer : The major features of the proposed payments procedures under GST are as follows:

  • Electronic payment process- no generation of paper at any stage
  • Single point interface for challan generation- GSTN
  • Common challan form with auto-population features
  • Use of single challan and single payment instrument

Good And Service Tax ( GST ) – Frequently Asked Forteen Questions

GST Frequently Asked Questions : The Constitution (122nd Amendment) Bill, 2014 was introduced in the Lok Sabha by Finance Minister Arun Jaitley on 19 December 2014, and passed by the House on 6 May 2015.  If you want other GST- Frequently Asked Questions with answer detail information so following this links download it .

  1. Good And Service Tax ( GST ) – Frequently Asked Forteen Questions
  2. Good And Service Tax ( GST ) for  detail information.

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