GST Queries and Answers – Guide for Good and Services Tax
As an account and tax based company, we come across queries related to GST filing almost every day. Our aim is to answer all queries on time but there are some common questions that keep on repeating.
Here’s a list of questions that we commonly encounter. We will come up with another addition to this blog if we come across more common queries.
Question 1) What exactly is GST or Goods and Service Tax?
Answer: GST is a goal constructed tax with respect to the utilization of goods and services. It is a type of tax that applied at each stage of goods. Starting from the production process to the definite utilization of it. An individual is needed to pay it with credit of taxes paid at past stages accessible as a set off. More or less, the final customer is required to bear the tax burden and pay for the value addition on a good.
Question 2) Can you explain the slab rates of GST?
Answer: Not many people are aware of this. But GST is collected at numerous rates running from 0% to 28%. The Council of GST has set a four-level tax structure for GST. It includes 5 percent, 12 percent, 18 percent, and 28 percent. They have set low rates for basic things and an elevated rate for luxurious items.
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There is a rise in the service tax rate, from 15 percent to 18 percent. There are several services that will be taxed at low rates, this includes the price of train tickets. The best part is that fundamental items like food items won’t be taxed or be taxed at a 0 rate. This step has been taken with an aim of controlling inflation.
Question 3) Which kind of GST is proposed?
Answer: The Center and States impose a double Goods and Tax on a general tax base. The tax imposed by Center is known as CGST i.e. Central Goods and Services Tax, while the tax imposed by States is known as SGST i.e. State Goods and Services Tax. For every supply of services and goods that takes place, inter-state is known as IGST i.e. Integrated Goods and Services Tax.
Question 4) What is the need for Dual GST?
Answer: In India, Central as well as States government handled the process of gathering and collected taxed. There are many kinds of duties and responsibilities that have been allocated to both levels by the Government of India. One of them includes GST collection. The idea of Dual GST is hence related to both Central and State government levels of India. It maintains a fiscal federalism balance in our nation.
Question 5) Which authority controls and controls GST?
Answer: SGST is controlled by State government whereas CGST and IGST are handled by the Central Government of India.
We hope this blog helped in clearing your basic queries related to GST.
For any further queries, feel free to comment below the blog or simply ask a question on the homepage of our website.