GST(Goods & Service Tax)
What is GST? GST is an indirect tax throughout India to replace taxes levied by central and state government. GST will subsume various indirect taxes including central excise duty, services tax , additional customs duty, surcharges, state-level value added tax. The following taxes will be bound together by the GST: Entertainment Tax Entry Tax Advertisement taxes Taxes applicable on lotteries. How GST operates? Case 1: Sale in one state, resale in the same state In the example illustrated below, goods are moving from Mumbai to Pune. Since it is a sale within a state, CGST and SGST will be levied. The collection goes to the Central Government and the State Government as pointed out in the diagram. Then the goods are resold from Pune to Nagpur. This is again a sale within a state, so CGST and SGST will be levied. Sale price is increased so tax liability will also increase. In the case of resale, the credit of input CGST and input SGST (Rs. 8) is claimed ...