GST has truly revolutionized India's tax structure by simplifying compliance and eliminating the cascading effect of taxes. Its tiered structure with CGST, SGST, and IGST ensures transparency while the rate slabs allow fair taxation across sectors. Moreover, its impact on economic growth is undeniable, from reducing hidden costs for businesses to fostering exports and operational efficiency nationwide. Tools like Sleek Bill https://sleekbill.in are incredibly helpful for generating GST-compliant invoices and staying on top of tax requirements. Feel free to explore these solutions to make your GST filings even more seamless!

1. Simpler tax structure With GST, the taxation system of our country has become simpler. It is a single tax, ensuring easier calculation. With this tax, the buyer gets a clear idea of the amount paid as tax when purchasing certain products. This is crucial when considering GST and its impact on the GDP.

2. More funds for production Another effect of GST on the Indian economy has been the reduction in the total taxable amount. This saved fund can again be invested back into the production cycle to foster production.

3. Support for small and medium enterprises Based on the size of your organization, the amount of GST depends on your firm's annual turnover, provided you have been registered under the Composition Scheme introduced by GST. Enterprises with a yearly turnover of 50 lakhs have to pay 6% GST whereas enterprises with 1.5 crores worth of turnover have to pay 1% GST.

4. Increased volume of export When considering GST and its impact on the Indian economy, customs duty on exporting goods has reduced. So now production units save money while producing goods and also while shipping them. This two-way savings has lured many production units to export their goods, increasing the export quantity.

5. Enhanced operations throughout India With a unified taxation system, transporting goods around India has now become easy, boosting operations throughout the country.

6. No more cascading effect With GST, taxes of the State and Central Government have been merged. This has removed the cascading effect of taxes, reducing the burden on the buyer and the seller. So even if it may look like one big chunk of tax to be paid, you pay lesser hidden taxes.

CGST - CENTRAL GOODS AND SERVICE TAX (CGST) IS LEVIED ON INTRASTATE SUPPLIES OF BOTH GOODS AND SERVICES BY THE CENTRAL GOVERNMENT AND IS GIVERNED BY THE STATE GOVERNMENT.

SGST - SGST MEANS STATE GOODS AND SERVICE TAX . IT IS COVERED UNDER STATE GOODS AND SERVICE TAX ACT 2016, ALL THE STATE TAXES LIKE VALUE ADDED TAX, ENTERTAINMNENT TAX, LUXURY TAX, ENTRY TAX ETC.

IGST - IGST MEANS INTERGRATED GOODS AND SERVICE TAX IGST FALLS UNDER INTERGRATED GOODS AND SERVICE TAX ACT 2016. IGST WILL BE CHARGED ON TRANSFER OF GOODS AND SERVICE FROM ONE STATE TO ANOTHER STATE

WHAT IS GST.??

GST IS A UNIFIED TAXATION SYSTEM WHICH WOULD END MULTIPLE TAXATION ACROSS THE STATES AND CREATE A LEVEL PLAYING FIELD FOR BUSINESSES THROUGHOUT THE COUNTRY MUCH LIKE THE DEVELOPED NATIONS. IT IS A MULTI-STAGE DESTINATION BASED TAX WHICH WILL BE COLLECTED AT THE RAW MATERIAL TO SELLING THE FINAL PRODUCT.

HOW GST AFFECT THE ECONOMIC GROWTH.?

(BENEFITS)

DIFFERENT ESTIMATES PEG THE NET ADVANTAGES TO THE GROSS DOMESTIC PRODUCT, UP TO TWO PERCENTAGE POINTS. THE GST REGIME IS ALSO EXPECTED TO THE RESULT IN BETTER TAX COMPLIANCE THEREBY INCREASING ITS REVENUE AND NARROWING GOODS WILL BE CHARGED INTERGRATED GOODS AND SERVICES TAX (IGST) WHICH IS EQUIVALENT TO THE CENTRAL GST + STATE GST. THIS WILL BRING EQUALITY WITH TAXATION ON LOCAL PRODUCTS.

"ONE NATION, ONE MARKET, ONE TAX" THE DRIVING MOTTO BEHIND THE INTRODUCTION OF GST. THE PROFOUND IDEA BEHIND THE IMPLEMENTATION OF GST WAS THAT IN WOULD OFFER A WIN-WIN SITUATION FOR ALL STAKEHOLDERS, BE IT THE GOVERNMENT AT THE CENTRE OR STATE, TAXPLAYER OR THE TAX ADMINITRATORS.

The Term GST stands for Goods & Service Tax. It is a comprehensive value added tax on goods & serviced. It is collected on value added at each stage. It has 4 types they are:-

1.) CGST - Central Goods & Service Tax, it is a tax levied by central government for trading within states. It is levied along with SGST/UGST.

2.) SGST - State Goods & Service Tax, it is levied by the state government for Intra State Trading. 3.) UGST - Union Territory Goods & Service Tax, it replaces SGST in union territories.

4.) IGST - Integrated Goods & Service Tax, it is levied by central government for inter state trading.

In India 4 slab rates are there i.e. 5%, 12%, 18% & 28%. GST Tax system is simple and easy to understand. It increases transperancy in transactions. Many Indirect taxes are subsuymed under GST, it removes the cascading effect of taxes ,hence making prices remain under control. It boost Make In India project & increases the quality of goods & services as they are globally competitive. It indirectly aims at reducing corruption. GST is a technology driven tax system that leads to speedy decisions, thus it helps in making Indian Economy digital & Standard.

State Goods and Service Tax (SGST) : SGST is the tax that the state government levies on intra-state goods and service transactions. SGST subsumes earlier taxes such as VAT, entertainment tax, luxury tax, octroi, tax on lottery, and purchase tax. UGST or Union Territory Goods and Service Tax replaces SGST in union territories like Andaman and Nicobar Islands or Chandigarh. Central Goods and Service Tax (CGST) : The central government levies GST on intra-state goods and service transactions. The central government collects the revenue generated through Central Goods and Service Tax (CGST). It is levied along with SGST or UGST. and revenues are shared between the state and the centre. Eg, if you are a Mumbai-based dealer and are selling to another dealer in Mumbai since it's an intra-state sale, both CGST and SGST will be applicable on this transaction. If your transaction of goods is worth Rs. 30.000, and it attracts 18% GST. then 9%, which is Rs. 2.700 of the tax amount, is collected as SGST by the state government, and a matching amount is collected as CGST by the centre. Integrated Goods and Service Tax (IGST) : Integrated Goods and Service Tax is the tax levied on inter-state goods and service transactions. It applies to imports and exports as well. Under IGST, the taxes charged are shared by both the centre and state. The SGST part of the tax goes to the state wherein the goods and services are consumed. In India, there are 4 types of GST rates: 1. GST slab of 5% 2. GST slab of 12% 3. GST slab of 18% 4. GST slab of 28% The basic household necessities and daily essentials fall under the lowest slab rate of 5% and the GST percentage for most luxury items is set at 28%. Below is the list of items under various slab rates. GST was the most important politically sensitive tax reforms, pending for over 40 years, carried out by the Modi Govt. It has eliminated 17different taxes and countless tax rate/slabs. The tax administration was the most corrupt one. Tolls were not only obstructing the smooth movement of goods , but also centre of corruption , were totally abolished . The entire tax administration is paperless, most transparent. Traders are free of harassment form corrupt taxmen. This has also increased “tax compliance” and collection. Now the No registration under GST has doubled from the earlier system. The implementation of Goods and Service Tax (GST) has transformed the economy into a digital and standardized one, which in turn will now help seamless flow of information and availability of common set of data to both the Centre and the States making the Direct and Indirect Tax collections more effective.

In 2017, Government of India and all state governments came together and decided to adopt Goods and Service TAX regime which centralized all indirect taxes into one i.e. GST. It was labeled as a one nation one tax regime. There are four different types of GST as listed below:

• The Central Goods and Services Tax (CGST)

• The State Goods and Services Tax (SGST)

• The Union Territory Goods and Services Tax (UTGST)

• The Integrated Goods and Services Tax (IGST)

Depending on how essential the good is, there are tax slabs in the implementation of GST.

• 0% - Essential commodities

• 5% - Items of Mass Consumption

• 12-18% - Standard Rates

• 28% -Demerit Goods

GST goes in line with technology and there are several future technological advancements which it will be compatible with. Moreover, MSMEs are now less dependant on tax experts when compared to the earlier regime, due to a simplified return filing system in place. Rationalisation of the composition scheme and introduction of quarterly filing option for taxpayers having turnover below Rs 1.5 crores proved to be a step in the right direction.

Due to the fact that it promotes technological advancements, which is the foundation of growth in any economy, it plays a major hand in India entering the digital era. Also, promoting small businesses indirectly supports the Make In India Initiative which was propagated by the Government of India

CGST:- central goods & service tax SGST:-state goods & service tax IGST:-integrated good & service tax GST:- goods & services tax. What GST. Is ? - In a nutshell, GST is a comprehensive indirect tax levy on manufacturer, sale & consumption of goods as well as services at the national level . GST SLABS 5% 12% 18% 28% 5% :- Coal,medicine,small restaurant, economy air class ticket,tea, coffee,spices,ice,fish fillet so on. 12%:- frozen meat,butter,ghee,animal fat, spectacles,carrom etc so on. 18%:-monitors, luxury hotels,IT service ,branded garments,camera,speakers so on. 28%:-shaving cream,washing machine,motorcycle,5star hotel, race club so on. Why GST is better than TAX? With GST adaption,the tax burden has reduced significantly since all taxes and integrated , and the burden is split equitably between manufacturing & services. GST has reduced taxes on certain goods by 2% & other by 7.5% . Controlling the corruption bu eliminating the cascading system of tax. GST has brought number of indirect taxes under one umbrella, simplifying taxation for services and commodity business. GST is aimed at reducing corruption without receipt. GST brings the needs of small companies to comply with excise,service tax & vat . The possibility of tax evasion is minimised completely with GST coming into action.

GST tax is a form of tax structure wherein the tax is levied on the value addition of the products and services on every stage. There are four types of GST as per the act i.e Central GST, Union Territory GST, Integrated GST and State GST.

The structure of the GST has been designed in such a manner that the luxury services are placed in higher tax bracket whereas the essential are placed in the lower bracket.There are total 1300 goods and 500 services which are divided across 4 slabs under the GST tax structure plus there is a special provision of goods that are exempted from tax.The tax rate slabs are 5%,12%,18% and 28%.

With the aim of simplifying tax structure in India,GST proposes to remove the geographical obstacles for trading and transforming the entire nation to ' One Comman Market Place'. While it is believed that 'One Nation One Tax' regime is paving path towards better economy of our country.Also GST has certain effects on our economy. For instance,it eliminates the cascading tax which reduces extra burden on consumer.It is simple and comprehensive tax system.It removed former complicated taxes uch as service tax,VAT,Excise duty,Entry tax,etc.and set uniform rates across.It is Destination based taxation wherein the taxes are charged on consumption unlike former tax system.By implementing GST, Indian government is looking forward to improving economy by eliminating cascading system of tax and controlling corruption in the business process in India which were possible in earlier tax system.

There are four types of GST namely IGST:integrated goods and services tax

SGST:goods and good services tax

CGST: central goods and services tax

UGST: union territory goods and services tax

The new indirect tax regime under the goods and services tax GST which was rolled out on 1

ON JULY2017 had witnessed on considerable amount of confusion over how the new taxation system will affect business and the payment of taxes the goods and services tax GST has the most several local taxes that were levied on goods and services

Additionally the government has fixed different taxation rates under each will be applicable to the payment of tax for goods and services rendered

GST rate is 18% comparison of CGST rate of 9% and SGST to rate of 9% in such cases the dealer collect rupees 1800 of which rupees 900 will go to the central government 900 will go to the Maharashtra government

When the supply of goods or services happen within a state called as intra-state transaction then both the CGST and SGST will be collected whereas if the supply of goods or services happen between states called as inter-state transaction then only IGST will be collected the use of correct GST becomes important to identify the applicability of taxes

In India GST rate for various goods and services is divided into four slabs they are 5% GST, 12%GST, 18%and 28%GST

HOW GST IS BETTER THAN EARLIER TAX SYSTEM? HOW GST AFFECT THE ECONOMIC GROWTH

After GST implementation the export of goods and services will become competitive because of nill effect of cascading effect of taxes on goods and products In a research done by NCAER it was suggested that GST would be the key revolution in India economy and it could increase the GDP by 1.0 to 3.0% with GST adaption the tax burden has reduced significantly since all taxes are integrated and burden is split equitably between manufacturing and services certain taxes become a part of the cost therefore with the simple mechanism of GST the cost burden has reduced by removing such affect and providing credit

GST has reduced taxes on certain good by 2% and other by 7.5% such as smartphones and cars GST brings uniformity and taxation process and allows centralised registration small and medium enterprises can benefit from the more competitive space due to the introduction of the good and services tax GST has reduce logistic cost and made the nationwide market easily accessible for the future expansion of business

GST is the most ambitious and remarkable indirect tax reform in India’s post-Independence history. Its objective is to levy a single national uniform tax across India on all goods and services. In 2017, Government of India and all state governments came together and decided to adopt Goods and Service TAX regime which centralized all indirect taxes into one i.e. GST.

• State Goods and Services Tax (SGST) - The state government charges SGST on intra-state goods and services transactions. Subsequently, the revenue is collected by the state where the transactions in question were carried out.

• Central Goods and Services Tax (CGST) - The central government charges CGST on the intra-state transaction of goods and services.

• Integrated Goods and Services Tax (IGST) - This GST tax is charged on inter-state transactions of goods and services and applied on imports and exports. Note that both Centre and State share the revenue collected through IGST as per the GST bill.

• Union Territory Goods and Services Tax (UGST) - This GST tax is levied by Union Territories and charged on all transactions carried out in any UT in India. It is similar in terms of payment rules on the GST platform and distribution.

The tax percentage in India have been divided into four GST rates – 5%, 12%, 18%, and 28%. The GST council revises inclusions under these rates from time to time in order to ensure efficient pricing of different categories of product

5%- In terms of goods, this tax slab primarily comprises household necessities.

12% - The 12% GST tax rate applies primarily to processed food when speaking of goods

18% - The lion’s share of all goods and service

28% - As per the GST rates chart, nearly 200 items invite a tax of 28%. Of these, most are luxury items and sin goods.

The industry has done an overwhelming effort to ensure the adoption of the ever-evolving GST law in the last 5 years. The industry was required to not only keep track of the changing tax provisions but was also required to upgrade to a technology-based tax ecosystem. In this respect, efforts made by the government in terms of timely issuing instructions, clarifications, and easing processes should be applauded too.

In line with industry expectations, GST has had a positive impact on the manufacturing sector by removing the double tax (Excise Duty, VAT) effect of taxes resulting in the reduction of manufacturing costs. Before GST implementation, certain taxes paid by manufacturers on profits were non-creditable. At a dealer/ distributor level as well, credit of taxes paid on services (such as rent paid to warehouses, logistic costs, retail stores, etc.) were non-creditable. Being costs to the business, manufacturers and dealers generally had no option but to add such cost in the selling price of product. With the barrier on credits being removed, there has been a reduction in manufacturing costs.

GST stands for Goods and Services Tax. GST is an indirect tax, which is payable when buying a good or availing a service. It is a tax that is levied on every good and service in the country. Since GST was implemented in India on July 1, 2017, many changes have been made to it. All types of taxes were removed and a tax called GST was introduced. GST has brought a lot of improvement in all sectors. Earlier people had to pay various types of taxes which was a lot of trouble but now with the advent of GST only one tax is to be paid. There has been transparency in governance. Since GST is a completely online system. It has reduced the possibility of manipulation. The objective of GST is to bring uniform tax regime. Benefits of GST 1) Combined indirect taxes like VAT, CST, Service Tax, CAD, SAD and Excise have been eliminated. 2) Less tax compliance and a simplified tax policy compared to the current tax structure. 3) Cascading effect of taxes i.e. tax on tax removed. 4) Reduction in cost of production due to reduction in burden of taxes on manufacturing sector. As a result, prices of consumer goods fell. 5) The burden on the common man was reduced i.e. the public spent less money to buy the earlier expensive products 6) Demand and supply of goods increased. 7) Supply increased as demand increased, thus ultimately increasing production of the good.

Benefits of GST Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all taxpayer services such as registration, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy with transparent. Uniformity of tax rates and structures: GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business. Removal of cascading: A system of seamless tax credits throughout the value chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business. Improved competitiveness: Reduction in transaction costs of doing business would eventually leads to an improved competitiveness for the trade and industry. Higher revenue efficency: GST will decrease the cost of collection of tax revenuesof government, and will therefore, lead to higher revenue efficiency.

Goods and Services Tax or GST is an indirect tax, an indirect tax is tax that is levied on goods and services, whereas, direct tax is imposed on income and profit. The difference between the two being that the government collects direct taxes straight from the individual or organisation, whereas indirect tax is collected by the government through an intermediate medium, hence the terms direct and indirect. Now, there exist several categories of GST, such as: CGST or Central Goods and Services Tax; SGST or State Goods and Services Tax; IGST or Integrated Goods and Services Tax; and UTGST or Union Territory Goods and Services Tax. The rates change depending on the category of goods, where half of the earnings go to CGST, while the remaining half goes to SGST. The rate for essential goods, that are an individual’s basic needs is at 5%, while computers and other services such as transportation of goods attract a 12% rate. Household items that are basic in nature are taxed at of 18 percent, while luxury goods attract a rate of 28 percent. There is an exception of very basic goods and services one needs for survival that are sold at an incentivised rate, that have no taxes on them. IGST is collected in case of imports and inter state transactions. The previous tax system was unnecessarily complicated, with quite a few loopholes and different laws in different states, this current tax system is centralised, much more simple when compared to the old system, as well as a lot more broader with applications in several ranges of goods and services, and applying straightforward and easy to understand rates, it has also resulted in more people filing taxes as well as preventing any exploitation of the system and tax evasion. All these along with better efficiency and transparency are the reasons for why this system is far more advantageous than the previous one. This system has helped decrease black money, and tax evasion, giving a boost to the government’s reserves leading to a much more productive government, and hence a better economy, the positive impact of this has been felt on the economy with an increase in the GDP growth.

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.

Goods & Services tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.

1. The State Goods and Services Tax (SGST)

SGST is defined as one of the two taxes imposed on transactions of goods and services of every state. Levied by State Government of every state, SGST replaces every kind of existing state tax that include Sales Tax, Entertainment Tax, VAT, Entry Tax, etc. Under SGST, the State Government can claim the earned revenue.

2. The Central Goods and Services Tax (CGST)

CGST is referred as the Central Tax levied on transactions of goods and services which take place within a state. Imposed by the Central Government, CGST ensures to replace all other Central taxes inclusive of State Tax,CST, SAD, etc. Prices of goods and services under CGST are charged in accordance with the basic market price.

3. The Integrated Goods And Services Tax (IGST)

IGST is applied on the interstate transactions of goods and services. IGST is also applicable on the goods being that are imported to distribute among the respective states. The IGST is levied when the movement of products and services occur from one state to another.

How GST is better than earlier tax system.

The enforcement of GST in India is said to be the most important and first indirect-tax reformation since independence. It has completely subsumed a number of indirect-taxes that existed in the previous tax system.

some of the most exclusive determinants of the GST structure and administration –

• GST is completely a techno-based tax system that reduces complications, saves time and brings extreme transparency.

• It is a destination – based/consumption-based tax structure, and thus, it completely removes the previous Cascading Effects.

• By bringing a large number of new businesses within its circumference, GST generated more Revenue for the Government.

• It eliminated the Cascading effects that redesigned the concept of Input Tax Credit (ITC). It helps businesses in series to get the benefits of the paid amount as tax. Only the last party in the chain i.e. customer/consumer shall have to bear the tax.

• In the global ‘Ease of Doing Business’ rank, India has become a noticeable and favorable country. It means, more foreign investors will be attracted to our country.

• GST comprises of a unique slogan, i.e. ‘One Nation – One Tax – One Market’ which brought the entire nation under a single unified tax roof.

• In most of the developed countries across the world, the GST system is followed, thus, in the long run, it will bring a great and positive impact on the Indian Economy too.

• Cost of many items of daily use have come down and due to less tax rate demand increased rapidly and it affected the production sector positively.

GST has made the taxation system far better, transparent and efficient. It is definitely a praiseworthy step in terms of transforming India from a global perspective.

GST affecting the economic growth.

After GST implementation the export of goods and services will become competitive because of nill effect of cascading effect of taxes on goods and products. In a research done by NCAER, it was suggested that GST would be the key revolution in Indian Economy and it could increase the GDP by 1.0 to 3.0 percent.

Introduction of GST: In 2017, Government of India and all state governments came together and decided to adopt Goods and Service TAX regime which centralized all indirect taxes into one i.e. GST. It was labeled as a one nation one tax regime.

GST has three component taxes. Any product or services, manufactured, sold and supplied attracts GST. This GST rate has two components. Half of GST is towards Central GST and rest of the Half is towards State GST. In case of inter state sale, supply of goods and Import of goods, Integrated GST is levied.

All manufacturers, sellers and suppliers of goods and services depending on their turnover threshold are registered either with the state authorities or central authorities. Once registered on the GSTN Portal they are required to file monthly, quarterly and year returns to submit their business details and to pay the GST as the stipulated GST Rates. These rates are decided by the GSTN council which is headed by the Finance Minister of India and has all Finance Ministers of all states as its members.

GST Rates on Goods and Services: (50% goes to CGST and rest 50% to SGST)

0% on essential food items like unpackages milk, food items etc and education/health services

5% Edible oil , household items and passenger transportation services etc

12% Computers etc and services of transportation of goods etc.

18% Personal care items and services at AC Restaurants

28% - Luxury segment items like motor vehicles and entertainment events services

IGST : Rates are 5%, 12%, 18%, and 28%

They are levied depending on the essential nature of goods. Essential the nature rates are lower and non essential the nature of the goods and services the rates are higher. IGST is levied on the goods imported from foreign countries and on domestic inter state sale of goods. For example A Mahindra vehicle manufactured in Maharashtra and sold at Karnataka will attract IGST of 28%.

How is GST better than earlier tax system:

It is centralized one nation and one tax. Easier to administer through Common GSTN Portal online, removes duplication and complicated structure.

Rates are decided by all state governments and the central government through the GSTN council. It has brought more transparency and minimized the black economy. It has increased the tax base which used to be around 80000 crores per month prior to GST and after GST it has increased to 140000 Crores per month as an average. It is helping India to achieve an enhanced GDP and reach a 5 trillion economy target. The Government is getting more revenue to fund infrastructure, education, health, welfare measures, defense needs.

Overall the country is developing with increasing ease of living.

•CGST stands for central goods and services tax. CGST is that tax that is charged on the interstate (existing or occuring within a state) supply of goods and services by central government. CGST is referred as the central tax impose on transactions of goods and services which take places within the state. •CGST is calculated- APPLICABLE GST RATE/2, 18/2= 9%

•SGST stands for state goods and services tax. SGST is one of the components of GST impose and is collected by the respective State government on interstate supply same as the CGST. SGST is one of the categories of goods and services tax(GST) which is impose by individuals states in India. SGST is calculated same as the CGST

•SGST- APPLICABLE GST RATE/2, 28/2= 14%

•IGST Integrated goods and services tax would mean the tax imposed under IGST act on the supply of any goods and services in the course of interstate trade or commerce. IGST shall be also supply to import of goods and services into India. IGST is charged when movement of goods and services from one state to another. For eg- if goods are moved from Tamil Nadu to Kerala IGST is there in such goods.

•IGST is calculated- if rate is 18% (suppose), sell of goods or services is RS 1000 then price will be Rs 1000+18% of 1000=RS1180

•GST has council over 1300 goods and 500 services under four slabs that are 5%,12%,18%,28% under GST. Gold has 3% tax and rough stones or semi precious stones that stone's taxes has 0.25% under GST. Before the GST, the VAT system was followed by India. GST not only brought and great revolution in the Indian economy and society but also in government revenue. GST practically removed the main problems of previous tax system which was passing effect. GST is the value added tax that is collected at every level in the supply chain process. GST is mentioned in every product which we use in daily lives. Due to the GST the custom duty eg- lifesaving drugs/equipment, fertilizers, food grains ets this have been reduced the export goods. The production unit saves the money by producing goods or while Shipping. Eg- In online Shopping we buy the product, the main price of that product and the shipping price. This two things have attracted many production systems to gain the profit in businesses. This have increased the export quantity. After the GST implementation the export goods and services will becomes more competitive and that may affect the attracted taxes of goods and services. In research paper of NATIONAL COUNCIL OF APPLIED ECONOMICS RESEARCH it is said that the GST will be the great revolution of Indian economy and it will increase the GDP from 1% to 3% in future. Thank you!

GST being a destination based tax got divided into three categories - State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) The State Goods and Services Tax (SGST) is a tax charged on intra-state supplies of both goods and services by the state government and is governed by the SGST Act. Central Goods and Services Tax (CGST) is levied on intrastate supplies of both goods and services by the Central Government and is governed by the CGST Act. SGST, governed by the State Government, will also be levied on the same intrastate supply.

1) CGST - Centralised Govt & Service Tax Central Government levy taxes on intra state goods and services. This is known as CGST 2)SGST - State Goods & Service Tax Is levied by the state Govt. on intra state goods and service transactions. 3)IGST- Integrated Goods and Service Tax is the interstate goods and service taxes . 4) GST - Goods and Service Tax is an indirect tax which is imposed on the supply of goods and services. Advantages:- 1- Easy to use /online procedure 2- Corruption free tax administration 3- Make in India became possible due to GST 4-Efficient Logistics 5- One nation one tax system 6 - More efficient and relevant 7- Easy transaction of goods for e-commerce company Goods and Services Tax (GST) is expected to provide the much needed stimulant for economic growth in India by transforming the existing basis of indirect taxation towards free flow of goods and services within the economy and also eliminating the cascading effect of tax on tax. Also limiting Corruption and black money ...

GST is an amalgamation of various indirect taxes such as Central Excise Tax, VAT/Sales tax, service tax, entertainment tax etc. Before the GST regime, there existed a range of different taxes which made doing business expensive and cumbersome. It also leads to allocative inefficiency and made India less attractive as an investment option for foreign investors.

How is GST better than the earlier tax system?

1. Easy and simple taxation: This one is obvious. Because of GST, there is uniformity in tax levied across the country. For example, if you want to buy a car you need to pay 28% GST, no matter what state you buy from. Before GST, this was not the case as different states used to levy different VAT and excise on automobiles.

2. Broadens tax base: The ease of doing business provided by GST has prompted many MSMEs to get themselves registered and get a GST number. This in turn also needs their client to be a GST Registered buyer (to claim ITC). This has led to a doubling of the tax base since 2017.

3. Discourages tax evasion: GST provides an incentive to businesses to get themselves registered to claim ITC which helps them lower their cost ( and to avoid getting penalised). The buyers of the business have no choice but to pay GST, as the government tracks the transaction through GSTIN. This makes it very difficult to sell products off the books and thus avoid taxes.

Components of GST:

1. CGST: Levied by Central Government on all transactions

2. SGST: Levied by the state government for Intra state supplies of Goods and services

3. IGST: Levied on inter-state supplies of goods and services.

GST rates for various goods and services are divided into 4 slabs: 5%, 12%, 18%, and 28%

Most essential commodities fall under the 5% GST slab.

Processed foods and sewing machines, diagnostic kits, jewellery boxes etc fall under 12% slab

Electronic Items fall under the 18% slab rate

Luxury products fall under the 28% slab rate.

There are three taxes applicable under this system: CGST, SGST & IGST. -CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a transaction happening within Maharashtra) -SGST: It is the tax collected by the state government on an intra-state sale (e.g., a transaction happening within Maharashtra) -IGST: It is a tax collected by the Central Government for an inter-state sale (e.g., Maharashtra to Tamil Nadu)

How is GST affecting the Economic Growth -Increased costs due to software purchase Businesses have to either update their existing accounting or ERP software to GST-compliant one or buy GST software so that they can keep their business going. But both the options lead to the increased cost of software purchase and training of employees for efficient utilization of the new billing software. -Not being GST-compliant can attract penalties Small and medium-sized enterprises (SME) may still not be able to grasp the nuances of the GST tax regime. They will have to issue GST-complaint invoices, be compliant with digital record-keeping, and of course, file timely returns. This means that the GST-complaint invoice issued must have mandatory details such as GSTIN -GST will mean an increase in operational costs As we have already established that GST is changing the way how tax is paid, businesses will now have to employ tax professionals to be GST-complaint. This will gradually increase costs for small businesses as they will have to bear the additional cost. GST came into effect in the middle of the financial year -Adapting to a complete online taxation system Unlike earlier, businesses are now switching from pen and paper invoicing and filing to online return filing and making payments. This might be tough for some smaller businesses to adapt .

Basic difference between earlier tax and GST Under GST, all the central and state taxes will be subsumed and a single tax will be levied on all commodities and services apart from motor spirit, petroleum, natural gas and high-speed diesel.

1.Basis of Levy Under VAT, tax will be levied at the place where goods are manufactured or sold, or the place at which services are rendered. Under GST, tax will be levied at the place of consumption, like a destination-based tax. 2.Registration Under VAT, the registration is decentralised under state and central authorities. Under GST, there will be uniform e-registration depending upon the PAN of the entity. 3.Validation Under VAT, the system will partly validate the returns, and full verification will be subject to assessments by state or central authorities. Under GST, the validation will take place on the system, and consistency checks will be carried out on input credit availed, tax payments, and utilisation. 4.Filing of Returns and Collection of Tax Under the old scenario, service tax and central excise were uniform, but VAT varied from state to state. Under GST, the process is uniform and the dates for collecting or depositing tax and filing returns are common. 5.Service Tax Under VAT, the centre charges service tax on a list of services under the Finance Act on provision/payment basis. Under GST, the State GST subsumes service tax depending upon rules relating to Place of Supply. 6.State VAT Under VAT, all commodities apart from those exempt are taxed. Under GST, the State GST subsumes this tax. 7.Excise Duty Under VAT, excise duty will be levied up to the point of manufacturing. Under GST, the excise duty will be replaced by Central GST and tax will be levied up to retail level. 8.pecial Additional Duty Under Vat, the centre charges tax on imports separately. Under GST, this duty is subsumed by State GST. 9.Entry Tax Under VAT, entry tax is charged by certain states for inter-state transfers, detained as import in local area. Under GST, entry tax is not applicable, but an additional 1% will be levied as tax on inter-state supply of certain commodity 10.Cascading Effect Under VAT, credit between service tax and excise duty is available, but there is no set-off against VAT on excise duty. Under GST, credit available on the whole amount Conclusion Change is definitely never easy. The government is trying to smoothen the road to GST. It is important to take a leaf from global economies that have implemented GST before us, and who overcame the teething troubles to experience the advantages of having a unified tax system and easy input credits