Back to SYNMAC main page
The current tax system gives businesses a tough time as it involves multiple taxes, complex compliance procedures, and intervention by several state and central tax divisions. This makes it highly difficult to setup a business in India which already stands at 133rd position when comes to doing business.
The talks of ushering in GST, however, gained momentum in the year 2014 when the NDA Government tabled the Constitution (122nd Amendment) Bill, 2014 on GST in the Parliament on 19th December,2014. The Lok Sabha assed the Billon 6th May, 2015 and Rajya Sabha on 3rdAugust,2016. Subsequentto ratificationof the Bill by more than 50% of the States, Constitution (122nd Amendment) Bill, 2014 received the assent of the President on 8th September, 2016 and became Constitution (101st Amendment) Act, 2016, which paved the way for introduction
A comprehensive tax structure covering both goods and services viz. Goods and Service Tax (GST) addresses these problems. Simultaneous introduction of GST at both Centre and State levels has integrated taxes on goods and services for the purpose of set-off relief and ensures that both the cascading effects of CENVAT and service tax are removed and a continuous chain of set-off from the original producer’s point/ service provider’s point upto the retailer’s level/consumer’s level is established.
How can GST change this? Instead of applying taxes on the total value of the product at each stage, the GST only imposes tax on value addition. Because it provides credit for the input tax paid at each previous stage of a supply chain, this method considerably reduces the overall manufacturing cost. We offer some of the best GST Training in Chennai.
Let’s take a closer look at how this works with a simple example Imagine a manufacturer selling steel buckets, each for Rs.1000 plus a gst of 10% (which is Rs.100) to a wholesaler located in the same state So, the wholesaler at state 1 buys them for Rs.1100 per piece and increases the total selling price to Rs.2,000 per bucket before selling a few of them to a retailer located in a different state at rs.2200 which is Rs.2000 Plus GST In the above example, you can see that at every stage of the process, the application of tax is uniform to the extent of increase in profit .
| CENTRAL | STATE | TAXES NOT SUBSUMED |
|---|---|---|
| Central excise | VAT/Sales Tax/Purchase Tax | Basic Customs Duty |
| CVD | Entertainment | Road Tax |
| SAD | Luxury | Toll Tax |
| Service Tax | Tax on Lottery/betting/gambling | Property Tax |
| CST | Octroi and Entry tax | Stamp Duty |
| Surcharge and Cess | State Surcharge and Cess | Electricity Duty |
1. General Introduction
2. Levy and Collection of tax
3. Time and value of supply
4. Input tax credit
5. Registration
6. Returns
7. Payment of tax
8. Refunds
9. Assessment
10. Audit
The current tax system gives businesses a tough time as it involves multiple taxes, complex compliance procedures, and intervention...
Income under head salary computation theoretically& by utility (Allowances, Perquisites, Retirement benefit)...
The current tax system gives businesses a tough time as it involves multiple taxes, complex compliance procedures...
The Income Tax advanced Course offers a framework in the Tax Advice and Compliance Requirements that is faced by the companies on a daily basis.
SGST, CGST & IGST, Input Tax Credits, Monthly Returns, GSTR 1,1A,2,2A,3 and other Returns, Annual Returns. Due date of Returns, Penalties & Interest to be paid...
Income tax update - Updated amendments as per INCOME TAX ACT 1961 Provisions which are amended till date...
The current tax system gives businesses a tough time as it involves multiple taxes, complex compliance procedures, and intervention...
Microsoft Excel is the premier software application for creating, editing and sharing spreadsheets, with countless practical applications, from financial reporting
Live classes for GST