10 important terms of GST understand in very simple words. Understand these 10 major terms related to GST in simple words here


GST Terms in very simple words - India TV Paisa
Photo: CANVA 10 major terms related to GST, understand in simple words

The Government of India implemented GST in the country on 1st July 2017. Now it is about to complete six years. Despite this, even today many people do not have detailed knowledge of GST. GST is an indirect tax applicable on manufactured goods and services. Earlier traders had to pay different types of taxes like service tax, sales tax, custom duty, surcharge and excise duty. In such a situation, the government had implemented GST to simplify the tax process. Let us tell you about some internal and important terms of GST today.

GST- GST stands for Goods and Services Tax. This tax has to be paid by the customers or businessmen for the purchase of goods or consumption of services. It was implemented in place of different types of taxes like excise duty, VAT tax, sales tax, service tax etc.

GSTIN- GSTIN stands for Goods and Services Tax Identification Number. This is a 15 digit digit in which our PAN number is also linked. You can also call it GST account number. Tax related transactions and returns are filed through the GST number only.

CGST- CGST stands for Central Goods and Service Tax. It is related to inter-state transactions. When any goods or services are supplied within the state, then in this situation the tax paid to the Central Government is called CGST.

SGST- SGST stands for State Goods and Service Tax. When any goods or services are supplied within the state, then in this case the tax paid to the state government is called SGST.

IGST- IGST ka full form hota hai Integrated Goods and Service Tax. When traders or businessmen between two states make a deal regarding any goods or services, then it is called Integrated Goods and Services Tax. You can call it a combination of CGST and SGST. The trader has to pay this tax only to the central government.

Reverse Charge- Reverse charge is a system of tax procedure, in which the buyer of goods or services collects the tax and deposits it with the government. Since the responsibility of collecting the tax on goods or services is shifted to the buyer instead of the seller, it is called reverse charge.

Mixed Supply- Sale of two or more goods and services at a fixed price is called mixed supply. For example, if a trader has sold fridge, TV, AC and sofa set for Rs 4 lakh, then such sale comes under the purview of mixed supply. In case of mixed supply, the rate of tax is determined by looking at the goods on which maximum tax is applicable.

Composite Supply- Composite supply means the sale of other goods and services along with the sale of one commodity in such a way that the sale of other goods and services is naturally linked with the main commodity. For example, if a trader also provides packing and transport services for electric goods, then it is called composite supply.

Continuous Supply- Continuous supply means the supply of goods or services within a specified period of time under a specified contract. It also includes facilities provided through wire, cable or pipeline. The supplier of such goods or services issues bills regularly or at a fixed period.

ITC- ITC stands for Input Tax Credit. In this case the customer gets credit against any GST paid in the past. Later, the customer can use these credits instead of money to pay any other GST.

GSTR- GSTR stands for Goods and Service Tax Return. This is a government form, which is mandatory to be filled by every taxpayer registered under GST law for every GST number. In this, a provision has been made for a total of 22 types of GST returns.

GST Compliance- GST compliance rating is a score given by the government to a business. So that other businesses can see how much they are following the rules of the tax department. The score is based on parameters such as timely filing of monthly and annual returns, submission of details of input credit utilised, payment of taxes etc.

Latest Business News





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Verified by MonsterInsights