What is GST and its Features : Top Features Transforming Tax Dynamics {Guide 2024}

GST: An easy way to understand the basics of Goods and Services Tax.

Goods and Services Tax, or GST, is a term that has become a part of our daily conversations. But what exactly is GST, and why is it so important? In this blog, we will explain the topic what is GST and its Features in a very simple language, and I kindly request our readers to please share their comments. If anyone doesn’t understand something, you can email to us.

what is gst and its features-min
what is gst and its features-min

Understanding GST : What is GST and its Features

GST stands for Goods and Services Tax and it is a type of tax imposed on the sale of goods and services. GST Rules are implemented in India on July 01, 2017 The idea behind GST is to simplify the taxation system and create a unified tax structure across the country.

Earlier, we had multiple taxes like excise duty, service tax, and value-added tax (VAT), which made the taxation process complicated. GST aims to streamline this by combining various taxes into one, making it easier for both businesses and consumers.

Components of GST: Divided into Three Main Components

1.CGST (Central Goods and Services Tax):

This part of the tax goes to the central government. It is levied on the intra-state sale of goods and services.

2.SGST (State Goods and Services Tax):

This tax is for the state government and is also applied to the intra-state sale of goods and services.

3.IGST (Integrated Goods and Services Tax):

IGST is applicable to the inter-state sale of goods and services. The revenue generated from IGST goes to the central government.

How Does GST Work? Understand with An Example:

Let’s break down how GST works with a simple example:

Suppose that you owns a bakery, and you are selling cakes. Under the old tax system, you would have paid separate taxes on the raw materials (flour, sugar, etc.) and the services you provide (making and selling the cakes). With GST, you only have to worry about one tax. When you sell a cake, you charge your customer the total cost plus GST. This GST is then split between CGST and SGST.

For instance, if your cake costs Rs. 400 and the GST rate is 10%, the customer pays Rs. 440 in total (Rs. 400 for the cake + Rs. 40 for GST). If it’s an intra-state sale, Rs. 20 goes to CGST and Rs. 20 goes to SGST. If it’s an inter-state sale, the entire Rs. 40 goes to IGST.

Benefits of GST:

1.Simplification:

GST simplifies the tax structure, making it easier for businesses to comply with tax regulations.

2.Elimination of flowing Effect:

The flowing effect occurs when taxes are charged on taxes. GST eliminates this by applying tax only on the value added at each stage of the supply chain.

3.One Nation, One Tax:

GST promotes uniformity in taxation across the country, fostering economic integration.

4.Improved Compliance:

With a simplified tax system, businesses find it easier to comply with tax regulations, reducing the likelihood of tax evasion.

Challenges of GST:

While GST brings numerous benefits, it also faces challenges:

1.Initial Implementation Challenges:

The transition to GST posed initial challenges for businesses and governments, adapting to the new tax regime.

2.Technology Adoption:

GST relies heavily on technology for filing returns and compliance. Some businesses, especially smaller ones, may struggle with the technological requirements.

3.Complexity for Small Businesses:

Smaller businesses might find the compliance procedures a bit overwhelming initially.

GST Portal Login Guide : How to login to Government GST Portal India

 Multiple Indirect Taxes has been replaced by Goods and Services Tax. GST Enables our Tax System friendly for all. To Do Activity related to GST will be done throught a Portal which is called GST Portal. Through GST Portal We all can do GST Based Activities such as GST Registration, filling of returns, pay tax, claim tax refunds. GST Registration cancellation process can also be done throught this portal.

 Services Provided on the GST Portal:

You can get GST Notices on GST Portal by Government of India, if any.  The Details of GST Based Activities which can be perform throght GST Portal is below: 

  1. GST Registration
  2. GST Returns Filing. ( With GSTR-9C)
  3. Online GST payment
  4. Payment Status Tracking
  5. Claim For GST Refunds
  6. Finding a GST practitioner.
  7. E-Cash, E-Liability, and E-Credit Ledgers Viewing Facility are also available.
  8. Downloading some important Forms like Transition form
  9. Letter of Undertaking can be submitted.
  10. Intimating stock
  11. Receiving invoice-wise details of input tax credit
  12. Cancelation of GST registration
  13. E-Way Bill portal Access
  14. View GST Notices, if any
  15. Can Submit GST-related grievances.
GST Registration Process
GST Registration Process
How to enroll on GST Portal?

On the off chance that your business produces a turnover that surpasses ₹40 lakhs available to be purchased of merchandise, you need to enroll under GST. Steps are :

1-Visit www.gst.gov.in.

2- Go to the Tab “Services”

3-Under Services Tab find “New Registration” tab.  click on it.

4-Fill The details and follow the steps.

5-After successful registration. Your application will be verifies by the GST Department.

6-After Verification by GST Department, you will get GSTIN (GST Identification Number).

7-Also You get a GST Portal Login User Name and Temporary Password, So that you can login to gst portal and start gst based activities.

GST Portal Login Process
GST Portal Login Process

 

How to Login to the GST Portal?

steps are as per the following:

1-         Go to the “Login” page

2-         Pick the “First Time Login” option

3-         Enter your GST Portal Username and password and then proceed to login.

4-         Enter a new username and Password which you will use further.

5-         Submit Form.

After Above Process you will back to your login page, now you have to use your new username and password. You can get to your dashboard after you login effectively and play out all GST Related assignments here.

GST HelpDesk Number : 1800-103-4786
Conclusion:

In conclusion, Goods and Services Tax (GST) is a comprehensive tax system aimed at simplifying the taxation process in India. By combining various taxes into one, GST streamlines the system, making it more transparent and efficient. While it has its challenges, the overall impact of GST has been positive, promoting a unified tax structure and contributing to the country’s economic growth. Whether you run a small bakery or are a consumer buying goods and services, understanding the basics of GST can empower you in navigating the world of taxation.

 

Direct and Indirect Tax Examples : An easy approach to understand {Updated 2024}

Let’s start with the basics. Taxes are the way the government collects money to fund public services. It’s like a contribution from everyone to ensure the smooth functioning of the country.

Types of Taxes

Direct Taxes: Direct taxes are like paying for the things you directly use. It’s a bit like buying a ticket for a ride at the amusement park – you pay for what you enjoy.

Indirect Taxes: Indirect taxes are more like a sneak peek. You may not notice them right away, but they’re there in the background. It’s like the maintenance fee included in your amusement park ticket.Read More

direct and indirect tax examples
direct and indirect tax examples

1 thought on “What is GST and its Features : Top Features Transforming Tax Dynamics {Guide 2024}”

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