The CGST is collected by the Central Government and the revenue is used to finance various activities. It is levied on the value of the goods and services supplied. It is a type of tax imposed by the Central Government on the supply of goods and services within a state. The full form of CGST stands for Central Goods and Services Tax. The process for GST registration is quite simple and straightforward for businesses. Under the Composition scheme, any small business owner with a turnover of less than ?1.5 Crore can pay the GST at a set rate of turnover. As previously stated, the GST reform has allowed the Central and State government to create a uniform taxation system. Some of the biggest benefits of GST for all kinds of industries and businesses have been: Uniformity in Taxes It has replaced the multiple taxes previously levied by the Central and State Governments of India. It is a dual-level tax system, comprising the Central GST (CGST) and State GST (SGST). The Goods and Services Tax (GST) is a comprehensive tax that is levied on the supply of goods and services. Let us learn more about GST, CGST & SGST, their meanings, and their differences. This simplification of the taxation system in India has played a key role in consolidating indirect taxes at the central and state levels, i.e., CGST and SGST. One major change witnessed with GST is that unlike its predecessor VAT (Value Added Tax), GST is collected at the point of consumption rather than the point of origin. In July 2017, the Goods & Services Tax (GST) was implemented in India in a bid to create a uniform taxation system that can be used countrywide, aka ‘one nation, one tax’.
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