Monday 26 June 2017

How It Works

The dealers registered under GST (Manufacturers, Wholesalers and retailers and service providers) will charge GST on the price of goods and services from their customers.

They will claim credits for the GST included in the price of their own purchases of goods and services used by them.

The sellers or service providers collect the tax from their customer, who may or may not be the ultimate customer, and before depositing the same to the exchequer, they deduct the tax they have already paid. 

Sunday 25 June 2017

GST Rate Schedule for Goods


Nil Rate
1)    Milk
2)    Curd
3)    Butter milk
4)    Live trees & other plants
5)    Cut flowers
6)    Fresh fruits & vegetables
7)    Cereals, flour, atta, besan & maida (without brand name)
8)    Bread, pappad, puffed or beaten rice
9)    Common salt
10) Contraceptives
11) Kumkum, bindi & sindoor
12) Plastic bangles
13) Stamps & judicial papers
14) Newspapers, periodicals & journals
15) Printed books

5% Rate
1)    Cream
2)    Skimmed milk powder & milk food for babies
3)    Products of animal origin
4)    Frozen fruits & vegetables
5)    Coffee & tea
6)    Spices
7)    Cereals, flour, atta, besan & maida (with brand name)
8)    Natural gums & resins
9)    Vegetable fats & oils
10) Cocoa beans, paste & shells
11) Pizza bread
12) Rusks & toasted breads
13) Ores & concentrates
14) Coal, coke, kerosene & LPG
15) Brochures & leaflets
16) Building bricks
17) Renewable energy devices
18) Railway locomotives

12% Rate
1)    Butter & cheese
2)    Dry fruits
3)    Fruit & vegetable juices
4)    Namkeens, bhujia, mixture, etc.
5)    Marble & granite blocks
6)    Bio-gas
7)    Ayurvedic medicines
8)    Tooth powder
9)    Agarbatti
10) Candles
11) Umbrellas
12) Copper or aluminium utensils
13) Bicycles & other cycles (not motorised)
14) Hand propelled & animal drawn vehicles
15) Spectacle & contact lenses
16) LED lights or fixtures
17) Pen & pencils
18) Sanitary towels, napkins, tampons & diapers
19) Works of art, collectors' piece & antiques
20) Cellphones

18% Rate
1)    Refined sugar
2)    Sugar confectionery
3)    Pasta
4)    Corn flakes
5)    Pastries & cakes
6)    Jams & fruit jellies
7)    Preserved vegetables
8)    Sauces
9)    Soups & broths
10) Ice creams
11) Instant food mixes,
12) Sharbat
13) Supari
14) Mineral water
15) Vinegar
16) Hair Oil
17) Soap
18) Matches
19) Toilet or facial tissue
20) Cigarette paper
21) Registers, account books & note books
22) Refractory bricks
23) Ceramic tableware & kitchenware

28% Rate
1)    Chewing gum & bubble gum
2)    Cocoa powder, butter, fat and oil
3)    Chocolates & other food preparations containing cocoa
4)    Pan masala
5)    Aerated water
6)    Paints & varnishes
7)    Perfumes
8)    Sunscreen
9)    Beauty or make-up preparations
10) Shampoos, hair cream or hair dyes
11) Dental floss
12) Shaving related products
13) Deodorants
14) Fireworks
15) Signalling flares
16) Articles of leather
17) Plywood & vineered panels
18) Wall papers
19) Air-conditioning machines
20) Refrigerators
21) Washing machines
22) Printers & photo copiers
23) Vacuum Cleaners
24) Speakers
25) Monitors & projectors
26) Motorcars, motor vehicles & motorcycles
27) Camera
28) Wrist-watches
29) Musical instruments, its parts & accessories
30) Mattress supports
31) Lamps & lighting fittings
32) Video game consoles & machines

Friday 23 June 2017

GST- Rates world wide

1)    China - 17%
2)    Indonesia -  10%
3)    Philippines - 10%
4)    Taiwan (Chinese Taipei) - 5%
5)    UK - 17.5%
6)    Australia - 10%
7)    France - 19.6%
8)    Germany - 16%
9)    Denmark - 25%       

Thursday 22 June 2017

How other countries do

More than 130 countries have introduced GST in some form.

It has been a part of the tax landscape in Europe for the past 50 years.

It is fast becoming the preferred form of indirect tax in the Asia-Pacific region.

It is interesting to note that there are over 40 models of GST currently in force, each with its own peculiarities.

While countries such as Singapore and New Zealand tax virtually everything at a single rate, Indonesia has five positive rates, a zero rate and over 30 categories of exemptions.

In China, GST applies only to goods and the provision of repairs, replacement and processing services.

It is only recoverable on goods used in the production process, and GST on fixed assets is not recoverable.

There is a separate business tax in the form of VAT.

Authorities

CGST – To be administered by Central Government.

SGST – To be administered by State VAT Department

Inter State Transaction – To be administered by A common Centralized Authority

Key Features

1)    Dual GST : Central GST & State GST
2)    Destination based State GST
3)    Common Base
4)    Uniform Classification
5)    Uniform Forms – Returns, Challans etc
6)    No cascading of Central and State taxes
7)    Cross credit between Centre and State not allowed
8)    Tax levied from production to consumption

What is goods and service tax

Goods and Service Tax is a tax on goods and services.

It is livable at each point of sale or provision of service.

At the time of sale of goods or providing the services the seller   or service provider can claim the input credit of tax which he has paid while purchasing the goods or procuring the service

This is simply very similar to VAT.

It can be termed as National level VAT on Goods and Services.

Only  difference  in this system is that not only goods but also services are involved.

The rate of tax on goods and services are generally the same.