Goods and Services Tax (GST) is an indirect taxation system used in India, levied upon the supply of goods and services.
Lets understand what is GST in brief?
GST is a multistage and a comprehensive tax system because it consumed almost all the other indirect taxes, leaving few exceptions.
GST is imposed on every step of production and distribution, and then refunded to all the parties in different stages and only imposing on the net beneficiaries of the production line over the net benefit of each party.
GST is a destination based tax not a source based tax. It means it is collected from client and not from the supplier.
GST rate slabs.
There are 5 GST rate slabs – 0%, 5%, 12%, 18% and 28%.
Items Not Under GST Tax Slab
The items not under GST tax slab are Petroleum products, alcohol drink and electricity. These item do not come under GST tax slab, they are taxed separately by the states as per the previous tax system.
GST Rate On Precious Stones, Luxury Items And Gold
There are some special slabs for few luxury items and gold in GST scheme.
For rough precious and semi-precious stones, it is 0.25%
For gold, it is 3% .
For luxury items like cars, drinks, tobacco products it is 28% in addition of 22% cess.
GST Rules And Regulation
The tax came into effect from 1 July 2017 through the implementation of the One Hundred and First Amendment of the Constitution of India by the Modi Government. The GST replaced existing multiple taxes levied by the central and state governments.
GST rules and regulations are governed by the GST Council of India consisting of the finance ministers all the states and the country.
GST Council – http://www.gstcouncil.gov.in/
Official Government Online GST Portal – https://www.gst.gov.in/