GST: The specialty of Goods and Service Tax is that the rate of this tax on any goods or services is the same throughout the country. That is, the customer or consumer present in any part of the country has to pay the same tax on that goods or services.
What is GST
In November 2016, the government had taken the decision of demonetization, while from July 2017, the government implemented Goods and Service Tax. When we buy a product or take a service, we have to pay tax for it. Under the ‘One Nation, One Tax’ system of Goods and Service Tax, you have to pay only one tax.
Goods and Service Tax
GST full form is Goods and Service Tax. The biggest feature is that the rate of this tax on any goods or services is the same across the country. That is, the customer or consumer present in any part of the country has to pay the same tax on that goods or services.
Types of Goods and Service Tax
First of all, let us know what is the full form of CGST. Its full form is – Central Goods and Service Tax i.e. when any goods or services are supplied within the state, in this case, the tax paid to the central government is called CGST. That is, if a businessman takes goods or services from another trader in his own state, then Central Goods and Service Tax has to be paid to the central government for this deal.
The full form of SGST is State Goods and Service Tax. That is when any goods or services are supplied within the state, then the tax going to the share of the state government is called State GST. Think of it in such a way that when a trader takes goods or services from another trader of his own state, then the state government has to pay State Goods and Service Tax on this transaction.
The full form of IGST is Integrated Goods and Service Tax. When there is a deal between traders or businessmen of two different states regarding goods or services, then Integrated Goods and Service Tax is levied on it. It is the sum of both CGST and SGST. Traders pay it only to the central government.
At present, 4 rates have been fixed on Goods and Service Tax. These rates are 5%, 12%, 18% and 28%.
Zero GST Product
Apart from this, there are many types of items and services on which no tax is to be paid.
Fresh milk, curd, lassi, buttermilk, peeled paneer, eggs, natural honey, potatoes, tomatoes, onions, garlic and other vegetables, fruits, unroasted coffee beans, unprocessed tea leaves, loose spices, loose cereals, Oil Seeds, Betel Leaves, Jaggery, Chuda, All Kinds of Salt, Electrical Energy, All Kinds of Contraceptives, Organic Manure, Kajal, Kumkum, Bindi, Sindoor, Alta/Mahavar, Bangles, Coal, Postal Items, Cheques, Books, Newspapers, journals or periodicals, raw silk, khadi yarn, pottery etc.
There is no Tax on children’s work items and newspapers – children’s drawing and coloring books and education services. Apart from this, there is no tax on buying clay idols, newspapers, Khadi clothes from Khadi stores. Health Services- The government has also kept health services under the purview of zero percent tax. There is also zero percent tax on sanitary napkins, stones, marbles, rakhis, sal leaves, wooden sculptures, and handicraft items.
A unit registered under section 12AA of the Income Tax Act, 1961, Government services of 20 lakh rupees or less in any financial year, services rendered in any religious work, agricultural produce, milk, salt, Transportation of flour etc., agricultural work etc. come under the purview of Goods and Service Tax exemption.
There is no tax of any kind on these services. Apart from these, services provided by court or judge to any entity or business with a turnover of up to Rs 20 lakh annually, services related to education, services of veterinary clinic are also included in this list.