LET US UNDERSTAND CGST, SGST & IGST !! - Swikriti's Blog

LET US UNDERSTAND CGST, SGST & IGST !!






Do you know about the term “GST”?

GST is Goods & Service Tax which is scheduled to be launched on 1st July 2017, but the question is what GST is and how it will benefit us?
Let me tell you Before GST we pay different taxes like if you buy movie ticket you need to pay an entertainment tax, if you want to sell something from your shop then you have to sales tax, if you are doing shopping then you have to pay vat tax and many more taxes you have to pay, to overcome these Taxes government introduced GST means you have to pay only One tax that is “GST”.

Picture Courtesy: moneyexcel.com

GST is one Indirect tax (a tax imposed on goods and services rather than an income or profit) for whole nation which will make India one common market. It will help in removing the tax barrier between the states by creating a single market environment.

Now let us understand the types of taxes which are included under GST:-

  1. CGSTCentral GST this tax is collected by central Government.
  2. SGSTState GST tax which is collected by State Government.
  3. IGSTIntegrated GST this tax is collected on inter-state supply of goods.

These three taxes are implemented to help tax payers to take credit against each other ensuring that “One Nation One Tax One Country”.




Picture Courtesy: cleartax,com





Let me tell you about the GST tax rate:-
GST council has finalized four-tier GST tax structure 5%,12%,18% and 28% , lower rates tax are for essential items and highest tax for luxury and gold including cars and SUV. For example in 5%tax (sugar,tea coffee, edible oil),  In 12 to 18% tax (hair oil, toothpaste etc.), and in in 28% tax (cars, mobile, television).

Now I will tell you how GST will benefit us-

  1. GST will eliminate several taxes.
  2. It will save you money.
  3. GST will bring one country one tax concept hence it will provide ease of business.
  4. There will be more employment.
  5. GST help in reducing the tax avoidance.
  6. GST will replace 17 taxes with one single tax which will help in increasing the revenue.
Picture Courtesy: nbc.com.m





Goods and Service Tax is very helpful and beneficial for common man and for the Indian Economy. It is a wonderful step taken by the government.

One thought on “LET US UNDERSTAND CGST, SGST & IGST !!

  • June 15, 2017 at 5:48 pm
    Permalink

    Nicely explained

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.