The Goods and Services Tax (GST) is a destination-based tax on the supply of goods and services. IT is a single tax that is applied from the point of manufacturing to the point of sale. The goal of the GST was to achieve pricing parity across the country.
Let’s talk about the GST tax slabs. The GST Council meets on a regular basis to modify the GST rates for various goods and services. Several states and businesses have recommended adjustments to the current states during these discussions.
The Goods and Services Tax (GST) was initially implemented to combine practically all direct taxes into a single tax known as the Goods and Services Tax. GST incorporated both the federal and state governments’ indirect taxes. GST is currently the primary source of indirect tax income for both state and central governments.
remember in the last article I talked about domino’s pizza where consumers like you and me pay 5% GST, that 5% GST was also divided into half 2.5%, and then paid to the central and state government. so 2.5% for CGST and 2.5% SGST.
HSN Code: Harmonized System of Nomenclature, It consists of 6 digits for categorizing over 4500 products.
SAC Code: Services accounting code to classify the services.
Any individual who is GST-registered must present a GST-compliant invoice for the sale of goods or services they offer. A GST invoice is required to include a few essential fields.
CGST and SGST are always included in invoices for intra-state supplies. IGST will be levied on interstate supplies. The location of supply impacts whether GST is charged on the interstate or intrastate transactions.
Example: Buyer is registered in Delhi and Supplier is also registered in Delhi. then It will be Intra-State supply and CGST and SGST will be levied.
If the supplier is registered in Delhi and the buyer is registered in Haryana then it will be an intra-state supply and IGST as tax will be levied.
A tax invoice can be revised in a variety of ways. If the tax rate increases or the amount of tax charged decreases, the supplier can submit a supplementary invoice for any upward or downward modification to address the situation. Supplementary invoices, such as debit and credit notes, are also available from the supplier. Issue an additional invoice if the return has already been filed. The original invoice will be supplemented within one month of the date of issue.
Profiteering is a phrase that refers to making excessive profits in the course of normal business. The Indian government is dedicated to safeguarding consumers against predatory practices, particularly with the implementation of GST. The anti-profiteering section allows the central government to investigate ITC claims and apply fines.
I hope, I gave you some insights about GST rates and GST slabs and delivered it in the best possible way.
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