WHY WE NEED TO SUBMIT RETURNS OF GST

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  • GST is known as the Goods and Services tax. The goods and services tax act was passed by the parliament and came into effect on 1st July 2017.
  • GST subsumed all other taxes currently levied and collected by the centre and state taxes such as central excise duty, service tax, state VAT, central state tax, purchase tax, luxury tax etc.
  • GST introduced to achieve the ideology of ‘One Nation and One Tax’.
  • GST is a destination-based tax regime GST is levied on the supply of goods and services where the GST is levied on the value addition made at each stage of supply.
  • Types of GST:
    • There are 4 different types of GST: –
    1. Central goods and Services tax (CGST): CGST is charged on the intra state supply of goods and services.
    2. State goods and Services tax (SGST): SGST is charged on the intra state supply of goods and services.
    3. Integrated goods and Services tax (IGST): IGST is charged on interstate transaction of goods and services.
    4. Union territory goods and Services tax (UTGST): UTGST levied on the supply of goods and services in any of the union territory in the country.
  • Registration of GST:

    Any person that is eligible under GST must register itself in the GST portal created by the government of India. And know the GSTIN: GST Identification Numbers.

  • Advantages of GST:
    1. To subsume all other central and state tax.
    2. To eliminate the cascading effect of taxes.
    3. Creation of unified national market.
    4. Certainty in tax administration.
    5. Benefits to small traders and entrepreneur.

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