GST Certificate

The Goods and Services Tax (GST)

The Goods and Services Tax (GST) is a comprehensive indirect tax that was introduced in India on July 1, 2017. It replaced multiple indirect taxes, such as value-added tax (VAT), service tax, and excise duty, with a single tax system.

GST is a consumption-based tax, which means that it is levied on the value-addition at each stage of the supply chain. It is based on the “destination principle,” which means that the tax is collected by the state where the goods or services are consumed.

There are three types of GST in India:

• Central GST (CGST): This tax is collected by the Central Government and is applicable on all intra-state supplies of goods and services.
• State GST (SGST): This tax is collected by the State Government and is also applicable on all intra-state supplies of goods and services.
• Integrated GST (IGST): This tax is collected by the Central Government and is applicable on all inter-state supplies of goods and services.

GST is applicable to most goods and services, with a few exceptions such as alcohol, petroleum, and real estate. GST rates are classified into 5 slabs: 0%, 5%, 12%, 18%, and 28%. (though It may be changed from time to time)

We advise our clients on GST compliance, including registration, returns filing, and payment of taxes. Additionally, we help them to maintain proper records, claim the input tax credits and suggest ways to reduce GST costs.

 

Benefit of GST

• Simplification of the tax system: GST has replaced multiple indirect taxes with a single tax system, which simplifies the process of tax compliance for businesses.
• Increased tax base: GST has expanded the tax base by including more goods and services within its ambit, which has led to an increase in revenue for the government.
• The reduced cascading effect of taxes: GST eliminates the cascading effect of taxes by allowing businesses to claim the input tax credits on taxes paid on inputs and raw materials. This reduces the overall tax burden on businesses and improves their competitiveness.
• Improved compliance: GST has introduced a robust and transparent online system for tax compliance, which has led to an increase in compliance and a reduction in tax evasion.
• Boost to the economy: GST has led to an increase in the ease of doing business in India, which has attracted more investments and has led to a boost in economic growth.
• Uniformity of taxes: GST has helped to create a uniformity of taxes across the country, which has led to a reduction in the prices of goods and services.

You can contact our team for more info or any assistance for the same, we will love to help you out.