EXEMPTION UNDER GST

Under GST, the government has fixed GST rates on 1,211 goods and 500 services in the range in
the range of five to 28 per cent. Certain items such as alcohol, petrol, diesel and natural gas will
be exempt under the GST. In addition to these, the GST Council has also classified certain items
under the 0 per cent tax rate, implying that GST will not be levied on them. This list includes
items of daily use such as wheat, rice, milk, eggs, fresh vegetables, meat, fish, indoor, bindi,
stamps, judicial papers, printed books, newspapers, bangles, handloom, bones and horn cores,
bone grist, bone meal, kajal, children’s’ picture, drawing or colouring books, human hair.

BENEFIT OF GST
1. Removal of bundled indirect taxes such as VAT,CST, service tax, CAD, SAD and
Excise.
2. Less tax compliance and a simplified tax policy compared to currency tax structure.
3. Removal of cascading effect of taxes i.e., removes tax on tax.
4. Reduction of manufacturing costs due to lower burden of taxes on the manufacturing
sector. Hence, prices of consumer goods will be likely to come down.
5. Lower the burden on the common man i.e., public will have to shed less money to buy
the same products that were costly earlier.
6. Increased demand and consumption of goods.
7. Increased demand will lead to increase supply. Hence, this will ultimately lead to rise in
the production of goods.
8. Control of black money circulation as the system normally followed by traders and
shopkeepers will be put to a mandatory check.
9. Boost to the Indian economy in the long run.
10. These are possible only if the actual benefit of GST is passed on to the final consumer.
There are other factors, such as the seller’s profit margin, that determines the final price
of goods. GST alone does not determine the final price of goods.

GSTIN
The registration in GST is PAN based and State specific. Supplier has to register in each State or
Union territory from where he effects supply. In GST registration, the supplier is allotted a 15-
digit GST identification number called “GSTIN” and a certificate of registration incorporating
therein this GSTIN is made available to the applicant on the GSTN common portal. The first 2
digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two
digits are for entity code and the last digit is check sum number. Registration under GST is not
tax specific, which means that there is single registration for all the taxes i.e. CGST,
SGST,/UTGST, IGST and cesses.
Structure of GSTIN
15 digita GSTIN (Goods and Services Tax Identification Number)

2 ABCDE 1234F 2 Z 5
9

 First two Digits – 29 – the first digit of GSTIN is state code as per Indian Censes 2011.
 Next 10 Digits - ABCDE 1234F – It is PAN number of a business entity like your shop,
mall or company.
 13th digit – 2 – It indicates the number of registration as a business entity has within a sate
for same PAN.
 14th Digit- It will by default as Z.
 15th Digit – 5 – The last digit will be a check code which will be used for detection of
errors.