OF GOODS AND SERVICE TAX (GST):
For the entities engaged in
Supply of Service.
GST have been planned to implement for
streamlining the different types of indirect taxes into “single taxation”
system. As of today, whether knowingly or unknowingly we were paying various taxes
like Entertainment Tax while watching a movie, Value Added Tax on purchasing
goods and Excise duties, Import Duties, Luxury Tax, Central Sales Tax, Service
Tax and etc…
Let’s Assume how good it will be if these were paid at:
shot and in one value and goes to reduce the price of consumption.
How is GST applied?
It Applies to whole of
India except Jammu and Kashmir (J&K). But Goods and/or Produced in J&K
and supplied outside J&K, GST will be applicable. GST is a consumption
based tax/levy. It is based on the “Destination principle.” GST is applied on
goods and services at the place where final/actual consumption happens. GST is
collected on value-added goods and services at each stage of sale or purchase
in the supply chain.
GST paid on the
procurement of goods and services can be set off against that payable on the
supply of goods or services. The manufacturer or wholesaler or retailer will
pay the applicable GST rate but will claim back through tax credit mechanism. GST
is going to be collected at point of Sale.
Post By : VinothRaj On: 19-04-2017