C-GST
In this artical you will know about CGST. Their Rates and Objects.
What is CGST?
CGST (Central Goods and Service Tax) is called the CGST Act 2017. This includes all taxes that were previously applicable as central indirect taxes. The CGST Act is enacted to make provisions for levying and collecting taxes on inter-state supplies of goods and services or both. The Central Goods and Services Tax Act 2017 states that CGST will apply to the whole of India except Jammu and Kashmir. On the inter-state movement, both the Central Goods and Services Tax and the state GST are applicable. CGST revenue goes to the central government and SGST goes to the respective state governments.
The rate slabs under CGST
There are around seven slabs of rates.
5% - (Most day-to-day used products are subjected to a 5% GST rate) examples are cream and yogurt, paneer, cashew nut, raisins, fruit and nuts, and a few others. Now for these products, 2.5% goes to the state government and the rest 2.5% goes to the CGST. Many household items are covered in this section.
12% - (The 12% GST rate is the second slab of rates under GST) Citrus fruits, jams, sausages, 20l drinking water, statues, pots and jars, geometry box, cutlery, railway coaches, printer ink, wooden toys, and more. Here for every product, 6% goes towards CGST and 6% goes towards SGST. This section covers processed food to a great extent.
18% - (The next GST slab rate is 18%) are bindis, chocolates, fountain pens, tripods, soap, toothpaste, and industrial intermediate products are therein this slab. Here 9% goes towards SGST and 9% goes towards CGST. The central goods and services tax act 2017 has a full list of items.
28% - (Products to be taxed at a GST rate of 28%) are cigarettes, caffeinated beverages, pan masala, motor cars and motorcycles, air conditioners, refrigerators, etc. Mainly luxury items are covered in this sector. In this, 14% goes towards SGST and 14% goes towards CGST.
3% - Coins, gold, silver, platinum, imitation jewelry, etc are taxed at 3%. Here 1.5% goes towards SGST and 1.5% towards CGST.
0.25% - Precious stones attract a 0.25% tax where 0.125% goes towards CGST and 0.125% goes towards SGST.
0% - Some products are taxed at 0% they are tax-free. Mammals, live swine, live bovine mammals, birds, insects, fish, curd, lassi, buttermilk, bananas, apples, grapes, human hair, sanitary napkins among others.
The central GST Act 2017 has a fully updated list of all items under all GST tax slabs.
Objects of CGST Law
The Central Government has levied a tax on the manufacturing of certain goods as Central Excise, on the provision of certain services as a Service Tax, on the inter-state sale of goods as a Central Sales Tax. Similarly, the state government levied tax in the form of value-added tax on retail sales, entry tax on entry of goods into the state, luxury tax, and purchase tax, etc. Accordingly, there is a multiplicity of taxes that are being imposed on the same supply chain.
The difficulties under the preceding taxation laws will be listed below:
The taxation of taxes levied by the central government is increasing due to the non-availability of taxes as compared to the taxes levied by the state governments.
Some taxes levied by state governments are not allowed as a set-off for payment of other taxes levied by them.
The diversity of value-added tax laws with different tax rates and different tax practices in the country divides the country into different economic zones; And
The creation of tariff and non-tariff barriers like octroi, entry tax, check post, etc. hinders the free flow of trade across the country. In addition, a large number of taxes result in higher costs of compliance for taxpayers in the form of returns, payments, etc.
Keeping in mind the above difficulties, all the above taxes are contained into a single tax called Goods and Services Tax, which will be levied on supply in which goods from manufacturing or import to the final retail level at each stage of the supply chain. And services will be included.
Taxonomy of CGST Law
The CGST Act, 2017 includes 174 clauses in 21 chapters and three schedules on supply without consideration, treatment of goods or services, and activities that would neither be treated as goods or services.
These schedules are as follows:
Schedule I - Activities should be treated as supplies, even if they are undertaken without consideration.
Schedule II - Activities considered as supply of goods or supply of services.
Schedule III - Activities or transactions that would be regarded as neither the supply of goods nor the supply of services.
Disclaimer: This article is intended for general consumption only. The information in the article was accurate at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.
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