GST (Goods and services tax) and is referred to as indirect tax which replaces the host of other indirect tax defined as VAT (value-added tax).Besides VAT this is also implied towards excise duty, service and purchase tax.
The tax is levied on the goods and services in India and even all over India. Now there is a need for you to know why does GST Services In India hold importance and how beneficial they can be?
But before that let us tell you how GST work?
There are different service providers where GST works differently. Now, this is where we need to know where do we fall and how it works?
For consumer
To those consumers, GST has to be paid on the product which is being purchased.
Retailers
Retailers will pay the GST on the product which is purchased from the distributors. Also to the margin which has generated.
Service provider
The service provider has to pay the amount for the product which is purchased plus the value-added.
Manufacturer
In the case of the manufacturer, they will have to pay the GST on the raw material which is purchased also to the value which is added to develop the product.
GST services in India was implemented in the year July 1 2017. Also, certain other tax laws were implemented before GST.
Here in this case the central and the state government used to collect the tax separately. In addition to this depending upon the state, there were also differences in the tax regime.
Also, the import tax was levied on one individual.
Different Types Of GST
There are four different types of GST Services In India and those are-
- Central Goods and Services Tax
GST is levied upon intrastate supply of products and services
- State Goods and Services Tax
Charged on the products and services.
- Integrated Goods and Services Tax
Is Charged on the inter-state transactions of products and services.
- Union Territory Goods and Services Tax
Is a supply of products and services in any of the Union Territories
Eligibility Of GST
Now, who is eligible and how much towards GST Services In India is also very essential to know. The company that is eligible to pay GST must be registered under the GST portal. The portal is created by the government of India.
After one has registered themselves they will get the unique number through which they can file the GST and begin with the process.
Also, it is a mandatory step for all buyers, sellers and service providers to register for GST.
There are several benefits as well which one can get after filing
GST Services In India and upon registration. They can begin while attaining-
- Refunds can be claimed
- To apply for loans in future
- The verification process can be made easily and also corrections.
So there is a need for you to file GST, also this requires a piece of technical knowledge and expertise. In that case, reaching a financial service provider will be beneficial
.
