GST Full form , What is the Full form of GST?

GST represents Goods and Services Tax. It refers to the levied value-added tax on most goods and services. In India, it is an indirect tax that replaces many indirect taxes such as the VAT, excise duty, services tax, etc. The consumers pay the GST while buying, and the businesses selling the goods and services remit it to the government.

gst full form

The GST Act became effective from 1July 2017. GST is an indirect tax single domestic law for the entire country. Under the regime of GST, the tax levying is at each sale point. In the intra-state sales, state GST and central CST, both are charged.

Why is it referred to as Multi-stage tax?

An item changes multiple hands through its supply chain: Right from manufacturing to the consumer as the final sale, these are the following stages:

Raw materials purchase

Manufacture or production

Finished goods warehousing

Selling to wholesalers/retailers/end consumers

The GST charges are on each stage making it a multi-stage tax.

GST components

The GST components applicable are:

CGST: It refers to the tax collected on an intra-state sale by the Central Government. (For instance, a transaction taking place within Maharashtra)

SGST: It is the tax collected on an intra-state sale by the state government (For instance, a transaction taking place within Maharashtra)

IGST: It is the tax collected for an inter-state sale by the Central Government (For instance, Maharashtra to Tamil Nadu)

GST rules

The issue for all taxable services and goods, a Tax Invoice, if registered under GST.

Issue Bill of Supply, if registered under the Composition scheme.

Ensure you number the invoices in a series as sequential order.

Ascertain, your GST invoices have your address, name, supply place, and GSTIN.

Advantages Of GST

GST removes the cascading effect on the goods and services totals sale. The cascading effect of removal has an impact on the cost of the goods. The GST regime eliminates the tax on tax, thereby the goods cost decreases.

GST is technologically-driven. The return filing, registration, refund application, and response is online on the portal of GST.

GST registration enjoys a higher threshold, and the online system for GST compliance is simpler.

Logistics have increased efficiency and regulates unorganized sectors.

There is a definite structure for eCommerce activities as there are lesser compliances under GST.

The government has extended the annual return filing due date up to 21 August for the period 2019-20. The GST composition scheme is for any taxpayer having turnover below Rs. 1.5 crore. The traders and manufacturers pay GST at 1% under the scheme, while for restaurants, it is 5% (for the ones not serving alcohol).