Know About GST (Goods and Services Tax)

What is GST?

GST is an indirect tax system in India that is referred to “Goods and Service Tax”. It’s far changed through older cascading tax machine which is implemented through central and state government. GST is the combination of three additives; CGST, SGST, and IGST. 

1. CGST: C stands for central government. CGST is accumulated by the central government on sale inside a state. CGST includes current taxes such as Excise duties, Custom duty, and service tax.
2. SGST: S stands for state government. The tax is collected by the state government. Sales tax, Entertainment tax, and VAT are merged under SGST. 
3. IGST: ‘I’ stands for integrated. The tax is accrued with the aid of the valuable authorities when the products are sold to 1 state to some other.

How is GST applied?

Every product in market passes via a supply chain. Manufacturer  > Wholesaler > Retailer  > Consumer. GST is levied on the final consumption of the supply chain. I.e. when a product passes through the supply chain, the last person bears the tax. The other components of the chain pay the tax but they declare again via tax credit mechanism. 

There are 4 different slabs under GST, 5%, 12%, 18% and 28%.

1. Slab A – 5%) vital households, foods and existence saving pills are blanketed
2. Slab B – 12%) includes processed food and computers. 
3. Slab C – 18%) 14% of goods and services are covered. 
4. Slab D – 28%) All luxurious items are listed in the fourth division slab.

Why is separate GST registration required for each state?

As in step with sub-phase 1 of section 19, if a character operates his enterprise in lots of states, he has to attain separate GST certificates for each regime, even though PAN number will remain identical.

Difference between PAN Number and GST

 Before GST entered the commercial world, every taxpayer had to have PAN card (Permanent Account Number). New GST number is a combination of 15 digits including PAN number and this is the chief reason before applying for GSTIN number you must have PAN.

How to Download GST Certificate?

By following some easy steps you may download GST registration certificate.

STEP 1: Open the GST India portal https://www.gst.gov.in/
STEP 2: Click on the ‘Login’ button to access the username and password page.
STEP 3: Enter the correct ‘Username’ and ‘Password’ credentials along with the captcha in the required field and click ‘LOGIN’.
STEP 4: Click on the Services –> User Services –>View/ Download Certificate.
STEP 5: Click on the ‘Download’ button on the screen to download the certificate. The certificate contains all the details on the tax transactions.