GOOD AND SERVICE TAX - COMMERCE SCHOOL

GST OR GOOD AND SERVICE TAX

 As the name implies , it is an indirect tax applied both on good and services at uniform rate . A single form  of tax known as GST tax will be applied throughout the country , replacing number of indirect tax like VAT , SERVICE TAX , CST AND CAD etc .

There is HSN  code for every product which comes under GST tax slabs. 

WHAT IS HSN CODE  ?

The Harmonized Description Number and coding system known as ' HARMONIZED SYSYEM OF NOMENCLATURE  , It is developed by World Custom Organisation. 

The motive of HSN is to classify the goods from the all over world in systematic and uniform manner. 

SLAB RATE OF GST 

. ZERO RATED ITEM - Those goods which are necessities for living and some agriculture products. 

EXAMPLE - Foodgrain used by common man .

. 5 % RATE  - 

Item of mass consumption including essential commodities will have low tax incidence .

. 12 % and 18 % RATE -

 Services 

. 28 % rate  - 

White goods like air conditioner , wachine machine , soaps , shampoo etc which was earlier taxed at 30 % to 31 % , now taxed at 28 % . 

NEGATIVE IMPACT OF GST ON COMMON MAN 

. COMPLIANCE BURDEN  - 

An individual have to file 3 returns monthly and 37 turn annually .

. Service like telecom , banking , airline etc BECOME MORE EXPENSIVE . 

. 12 % and 18 % RATE -

 Services 

. 28 % rate  - 

White goods like air conditioner , wachine machine , soaps , shampoo etc which was earlier taxed at 30 % to 31 % , now taxed at 28 % . 

NEGATIVE IMPACT OF GST ON COMMON MAN 

. COMPLIANCE BURDEN  - 

An individual have to file 3 returns monthly and 37 turn annually .

. Service like telecom , banking , airline etc BECOME MORE EXPENSIVE . 

. Increased in cost in service means , an ADD ON TO YOUR MONTHLY INCOME .

. If the actual profit is not to the customers and the seller increases his profit margin, then the price of the goods also sees a rising trends . 

. Time will be needed to understand and new software have made for it .