Service tax based on Negative List
GST stands for Goods and Services Tax. It is an indirect tax which has replaced many other indirect taxes like VAT, service tax, purchase tax, excise duty etc. In India, GST is levied on certain supplies of goods and services. It is a uniform tax applicable across India.
Types of GST in India
The four different types of GST are given below:
- Central Goods and Services Tax: CGST is charged on the intra state supply of products and services.
- State Goods and Services Tax: SGST, like CGST, is charged on the sale of products or services within a state.
- Integrated Goods and Services Tax: IGST is charged on inter-state transactions of products and services.
- Union Territory Goods and Services Tax: UTGST is levied on the supply of products and services in any of the Union Territories in the country.
Registration of GST – All businesses with GST must register on the GST portal set up by the Government of India. Registered entities are assigned a unique registration number called GSTIN. Registration of all service providers, buyers and sellers is mandatory. A business with total revenue of Rs 20 lakh or more in a financial year is required to register for GST.
GST has made doing business and doing business in India very painless and smooth. The size of the market for every trader and entrepreneur has increased. Referring to the service sector in India, GST has positive effects such as consolidation of taxes on interstate service providers, clear separation of goods and services, input credit and uniform filing of returns.