What are the benefits of GST in India?

Simplified Tax Structure: GST replaces multiple indirect taxes like Central Excise Duty, Service Tax, VAT, and others, simplifying the tax structure. It brings all these taxes under a single umbrella, making compliance easier for businesses. Elimination of Cascading Effect: GST eliminates the cascading effect of taxes, also known as "tax on tax." Previously, taxes were levied at each stage of production and distribution, leading to an increase in prices. With GST, taxes are levied only on the value addition, reducing the tax burden on businesses and consumers. Improved Efficiency and Ease of Doing Business: GST streamlines the taxation process by introducing a unified tax system across the country. It reduces compliance costs, removes tax barriers between states, and promotes seamless movement of goods. This improves overall efficiency and ease of doing business. Boost to Economic Growth: GST aims to create a common national market, fostering economic growth. By eliminating state barriers and reducing compliance burden, businesses can expand their operations and reach a larger consumer base. It also promotes investment and enhances competitiveness, driving economic development. Increased Transparency: GST is a technology-driven tax regime that relies on digital systems for registration, filing returns, and claiming input tax credits. This enhances transparency in transactions, reduces the scope for tax evasion, and promotes a more accountable business environment Benefit to Consumers: GST aims to reduce the overall tax burden on consumers by eliminating hidden taxes and improving efficiency.

India GST Calculator

In India, GST (Goods and Services Tax) is divided into slabs – 0%, 5%, 12%, 18% and 28%. Most goods and services are expected to charge 18%. GST also known as VAT (Value Added Tax). However there are some products and services such as petroleum products, alcoholic drinks, and electricity that are not taxed under GST. These products are taxed separately by the individual state governments.

What is GST?

GST stands for Goods and Services Tax is an indirect levied on the supply of goods and services. GST was introduced on 1st July 2017 in India and replaced most indirect taxes. GST is a comprehensive, destination based tax levied on every value addition.

Also, Visit Singapore GST Calculator

How to use the Indian GST Calculator?

We’ve predifined a button, you just need to put an amount and click on the calculate button.

The amount of GST in “Add GST” is the GST inclusive price.
The amount of GST in “Subtract GST” is the GST exclusive price.

What are different tax heads under GST?

State Good and service tax (SGST): Collected by the State Government.
Central Goods and service tax (CGST): Collected by the Central Government.
Integrated Good and service tax (IGST): Central Government accumulates it for inter-state purchases or sales transactions and imports.
Union Territory GST (UTGST): Collected by the Union Territory Government.

How to Calculate GST in India?

Any small business, manufacturer, wholesaler and retailer can calculate GST manually with the help of the following formula:

Include GST Amount:

GST Amount = (Original value * GST%)/100.
Price to be charged = Original value + GST Amount.

Exclude GST Amount:

GST Amount = Original value – (Original value * (100 / (100 + GST% ) ) )
Net Price = Original value – GST Amount

Special GST rates in India

There is a special GST 0.25% rate on rough precious and semi-precious stones and 3% on gold. In addition the cess of GST 15% and other rate of GST 28% is levied on few items like aerated drinks, luxury cars and tobacco products.

What are the benefits of using the Indian GST Calculator?

The online GST calculator assists you to find out either gross or net product price on GST rate. It saves time and minimizes human error while calculating the total cost of goods and services.

Advantages of GST

Removing the cascading effect of tax.
Higher threshold for GST registration.
Composition scheme for small businesses.
Simpler online facilities for GST compliance.
Relatively lesser compliances under GST.
Defined treatment for e-commerce activities.
Increased efficiency in logistics.
Regulating the unorganized sectors.

Disadvantages of GST

The major disadvantage is, it has increased the tax liabilities for small and medium enterprises (SMEs). The excise updates the law of turnover Rs. 1.5 crores to Rs. 20 lakhs, If any business has turnover of 20 Lakh, need to register for GST.

When do you need to register for GST?

GST registration is required for everyone. But if the supplier or retailer has annual income more than Rs. 20 Lakhs, You need to register for GST. You can use the GST portal for online registration.

Please see, How to Register for GST in India

How to Claim GST Refund?

Any taxpayer can claim a refund of any tax, interest, fees or any other amount paid by an application in form GST RFD-01 through the GST Common Portal or through a GST Facilitation Centre.

Different types of GST Returns

GST On Output.
Outward Supplies (Sales).
Other Particulars (As May be Prescribed in the Document).
Inward Supplies (Purchases).

Non-Resident GST Registration

A non-resident taxable person can file electronically an application for registration using the form GST REG-09. Along with tested passport copy. The application must be verified through EVC (Electronic Verification code). It must be submitted at least five days prior to the commencement of business.

In case of foreign business, the application for registration shall be submitted along with the Tax Identification Number of that country. An advance the deposit of tax must also be submitted along with the application.

Types of Taxpayers for India GST

Regular Taxpayer.
E-commerce Operator.
Casual Taxable Person.
TDS Deductor/Deductee.
Non-resident Assessee.
Composition Taxable Person.
Input Service Distributor (ISD).

When should you apply for GST?

Every person from any state can apply for GST, if the turnover is more than Rs. 20 lakhs, within thirty days from the date on which he becomes liable to registration. non-resident taxable persons should apply for at least five days.

FAQs

All registered businesses have to file monthly or quarterly GST returns and an annual file return depends on the business. The business types may include e-commerce operators, TDS deductor, non-resident taxpayer, Input Service Distributor(ISD) etc.

Mostly people use their card details PAN (Primary Account Number) to know their GST Number. You can also use the GST web portal, Simple open portal portal, enter PAN and click on the search to know your GST number.

No, The GST registration is only required when your business has more than Rs.20 Lakhs turnover. For registration, you can use the GST Portal.

The GST registration process can take 6 business days to complete. To register for GST, use the online GST Portal. Fill the requirements and submit the necessary documents for registration.

VAT (Value Added Tax) is only payable through offline. But the GST is both online and offline mode.

EVC (Electronic Verification code) is a 10-digit alphanumeric code which is sent to the number to verify electronically, login to the e-Filing portal or used to reset password.

Simplified Tax Structure: GST replaces multiple indirect taxes like Central Excise Duty, Service Tax, VAT, and others, simplifying the tax structure. It brings all these taxes under a single umbrella, making compliance easier for businesses.
Elimination of Cascading Effect: GST eliminates the cascading effect of taxes, also known as “tax on tax.” Previously, taxes were levied at each stage of production and distribution, leading to an increase in prices. With GST, taxes are levied only on the value addition, reducing the tax burden on businesses and consumers.
Improved Efficiency and Ease of Doing Business: GST streamlines the taxation process by introducing a unified tax system across the country. It reduces compliance costs, removes tax barriers between states, and promotes seamless movement of goods. This improves overall efficiency and ease of doing business.
Boost to Economic Growth: GST aims to create a common national market, fostering economic growth. By eliminating state barriers and reducing compliance burden, businesses can expand their operations and reach a larger consumer base. It also promotes investment and enhances competitiveness, driving economic development.
Increased Transparency: GST is a technology-driven tax regime that relies on digital systems for registration, filing returns, and claiming input tax credits. This enhances transparency in transactions, reduces the scope for tax evasion, and promotes a more accountable business environment
Benefit to Consumers: GST aims to reduce the overall tax burden on consumers by eliminating hidden taxes and improving efficiency.

Conclusion

In this article, you’ve about the Indian GST, India GST has 5 slabs 0%, 5%, 12%, 18% and 28%. You can apply for GST only if your business has turnover more than Rs. 20 Lakhs. To register online, you can use the MyGST portal. Fill in all your details and upload all required documents.