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(TAX)
A TAX IS A COMPULSORY FINANCIAL CHARGE OR
SOME OTHER TYPE OF LEVY IMPOSED UPON A
TAXPAYER BY A GOVERNMENT ORGANISATION
IN ORDER TO FUND VARIOUS PUBLIC
EXPENDITURES.
THERE ARE TWO TYPES OF TAXES:
A - DIRECT TAX
B - INDIRECT TAX
{DIRECT TAXES ARE THE TAXES THAT ARE LEVIED
ON THE INCOME OF INDIVIDUALS OR
ORGANISATIONS. Ex. INCOME TAX, CORPORATE
TAX, INHERENT TAX.}
{INDIRECT TAXES ARE THOSE PAID BY
CONSUMERS WHEN THEY BUY GOODS AND
SERVICES. Ex. EXCISE DUTY AND CUSTOM DUTY.
IT IS MOSTLY DONE ON MANUFACTURING OF
GOODS AND SERVICES.}
@GOODS AND SERVICES TAX (GST) IS A PART OF
INDIRECT TAX IMPOSED IN INDIA.
GST IS A COMPREHENSIVE DESTINATION
BASED TAX AS IT HAS SUBSUMED ALMOST ALL
THE INDIRECT TAXES.
THE TAX CAME INTO EFFECT FROM JULY 1,
2017 THROUGH THE IMPLEMENTATION OF
ONE HUNDRED AND FIRST AMENDMENT OF
CONSTITUTION OF INDIA BY THE CENTRAL
GOVERNMENT.
THE TAX RATE, RULES AND REGULATIONS ARE
GOVERNED BY THE GST COUNCIL WHICH
CONSISTS OF 33 MEMBERS CHAIRED BY THE
UNION FINANCE MINISTER.
GOODS AND SERVICES ARE DIVIDED INTO FIVE
DIFFERENT TAX SLABS FOR COLLECTION OF
TAX -0%, 5%, 12%, 18%, 28%.
PETROLEUM PRODUCTS, ALCOHOL
CONSUMPTION, ELECTRICITY ARE NOT
CONSIDERED UNDER GST CATEGORY.
THE SINGLE GST SUBSUMED SEVERAL TAXES
AND LEVIES WHICH INCLUDED CENTRAL EXCISE
DUTY, VALUE ADDED TAX, OCTROI DUTY,
CUSTOMS DUTY.
GST IS LEVIED ON SALES, PURCHASES,
TRANSFER, BARTER OF GOODS/SERVICES.
INDIA ADOPTED A DUAL GST MODEL,
MEANING THAT TAXATION IS ADMINISTERED
BY BOTH UNION AND STATE GOVERNMENTS.
1.CENTRAL GST
2.STATE GST
3.INTEGRATED GST