1 Gst- Goods and service tax is a govt initiative to remove all different types of 32 taxes and it will be only one tax system that is Gst.
2 The implementation started on 1st July 2017. Before Gst there was two types of taxes which is Indirect taxes and direct taxes.
- Direct tax: It was property tax, corporation tax, gift car and etc.
- Indirect tax: Manufacturing tax, customs, selling, vat and etc.
3 This was all scrapped and one nation tax system revived which is Gst and following are the types of Gst.
- CGST
- SGST
- UTGST
- IGST
4 CGST : Central govt gst
- It marks 9 % gst which is applicable to all states to pay.
5 SGST : State govt gst
- It marks as 9 % gst on all goods and services which combine 9 % gst + 9 % Cgst to 18 %
6 UTGST: Union territory gst
- Centre ruled union territory which mark as 9% Cgst+9%Utgst to 18%
7 IGST : Integrated Gst
- If some goods are moving from one state to other state then taxes will be Igst 9 % + 9 % Cgst which will 18% to pay.
8 Benefits :
- Hassle free process tax under one regime to pay.
- All tax % are same in all states/ It is beneficial for foreign direct investment (fdi) which will be a game changer for the economy.
- Previously tax % were above 30 to 35 % but due to Gst it has been cut down to 18 %.