Saturday, 13 August 2016

what is GST Bill in India

What is GST Bill in INdia
Dear Friends...

I think you all had heard about the GST Bill which is in news from last Few weeks. 

But What is This GST Bill and how it will effect the Indian Economy.

GST means Goods and services Tax

Many economist suppose that after the application of GST the GDP of India will be raise upto 2-3%. This will really make a significant change in economy. 


what is GST Bill ?
GST means a comprehensive Indirect Tax on Sellers and manufacturers to Sell and purchase of goods n service in India. This will replace all type of Indirect taxes levied by the Central and state Government. GST will be applicable and collected at every point of service, sale, and purchase of Products on the basis of input tax.


GST bill in India is a type of tax which supersedes all other Indirect Taxes like service tax, vat , entertainment tax, excise duty etc. 

GST Bill will gives a comfort of paying only a single tax and getting the input tax credits of what earlier paid on the the same. By this it will save tax on tax.

There are many advantages and disadvantages of gst which was cleared earlier. but the main benefit of gst is the relief and peace of mind which gives you more business and more revenue.

GST Bill has already approved from Rajya-sabha and Lok-sabha and now it is in to the process of approval of gst Bill from states.

I believe that GST bill in India will give a boom to economy and there will be more business and more jobs.


Also Read
Benefits of GST on tax payers

Wednesday, 10 August 2016

effect of GST on products and Services


How Products and Services react after the GST and how the prices will be effected is the biggest question in everyone's Mind.

we all are very happy that GST is going to applicable soon in India but do we know what is the effect of GST on Products and Services.

at present when there is no GST, we are paying different taxes on product and services wise but with the GST all will be taxed in the same manner. 


Thus the Products and Services which were taxed at lower rate will be costlier after the GST and the Products which where there is high tax rates will be cheaper with GST effect.

Currently there are 119 Services which are covered under service Tax act and the rate of service Tax is 15%. But it is expected that the GST rate will be 18-20 % So, all the services will be costlier by 3-5% .

common man has to pay services on every thing like mobile Bill, DTH bill, Bank charges, Hotels Bill, Transportation etc. So all will be costlier. This is the biggest effect of GST on common persons.

But the products where earlier EXCISE and VAT both are applicable has to pay about 32-40% tax to the government and there is a big relief because of the GST. Like Small Cars, Cement sector, Cinema Halls, consumer durable Like Fridge , television etc. so there is good effect of GST on Products and services.


Whenever there is a statuary changes will happens is always painful for a shorter period but in the long run it will give always fruitful results. No one knows what will be the rate of GST while government of India assures that it will be in the reach of everyone.
effect of GST on Products and services


Specially the prime minister of India sh Narendra Modi assures that all the products and services which is basic need of poor will kept out of the GST and GST will not effect those. He also says this is a very good change going to happen in India and we all will see thee best result of GST effect.

We all were Discussing the advantages and Disadvantages of GST but PM clarify that there is only the benefits of GST and it will ease the business in INDIA

Also Read


When will GST will Apply with Details

What is GST and Its Laws

Tuesday, 9 August 2016

Steps to apply GST Bill in India

goods & service Tax in india
As you all know that GST means Goods and Services Tax Bill which is pending from last 12 years.

Now this Bill has passed from both the assemblies i.e. Rajya Sabha and Lok Sabha

But do you think that GST Bill is now applied in India 


No.... there is a long way to go.

& the question in mind is what are the process of applying the GST Bill in India

As we all know that people are discussing about the advantages and disadvantages of GST Bill in India but this is also true whenever there is major change happens in the systems all have to suffer for a short time.

Let  me clarify you that 
The following Steps are to be followed to Apply goods & services Tax in India



Firstly it had been Passed from RajyaSabha and then all the amendments of the Bill had also passed from Loksabha on Monday 8-8-2016.
Now the GST bill will go to all states assembly and as per the constitution of India this bill must be passed and supported by 50% States of India, means at least 15 states have to approve this GST Bill to be applied in India.
Now this GST Bill will go to Presidents Office for his assent as per the law. After the Approval of the President It will be a Law.  
The structure of Goods & Service Tax Council will be follow to creating a constitutional body. This GST council have members from centre as well as from states.
This GST Bill council also make a decision on the GST Rate to be applicable.
If all the things goes well then again it has to be table on Rajya Sabha and Lok Sabha

All the process of charging and IT has to be setup

Finally The GST will apply in all the state and hope for the good days of not paying Tax on Tax
so Above were the steps to follow to apply GST Bill in India and we all hope that this will apply by 1st April 2017

Also Read

Advantage and Disadvantages of GST bill

GST Bill Importance and Benefits in India

Sunday, 7 August 2016

GST Bill Advantages and Disadvantages in India

Advantages and disadvantages of GST Bill
 As you all know that GST Bill in Rajya Sabha is Passed on 3rd August 2016 and in the process to applicable in India after certain process.

we all are thinking what is GST and what are the benefits and losses of GST Bill in India. It is true that some products and services will be cheaper and some will be costlier.

Like all the other things GST also has some pros and cons which will clarify only after the final draft of the bill which will applicable after passing from lok sabha and State assemblies. we all have to wait for some time come to know what exactly will be the tax rates of GST in India.

while it is a must awaited bill but the GST advantages and disadvantages on common man and some of them are as follows :



advantages of GST or Benefits of The goods & service Tax Bill 

  • The GST model is a single Tax model and Tax on Tax will be removed
  • After GST you will take India as a one market.


  • All the products and services will be provided at same price as the rate of tax will be same in all over India this is the Biggest advantages of gst bill in India
  • In GST the tax is not applicable on manufacturing hand so for manufacturers it is easy to grow their business and develop.
  • With GST effect the evasion and theft of Tax will be minimised as it is easy to track. 
  • All the Products where multiple taxes where applicable will be cheaper like excise duty and vat both will come to about 30% of Tax but in GST it is assumed to be 18-20%.
Above were the advantages of the GST bill and now I will show you some Disadvantages of GST bill in India. This are the losses which will effect you only in short term and may not be painful for you in the long run if the system will work properly.

Disadvantages of GST Bill in India
  • The Service Tax in India is now 15% but the proposed GST is about 18-20%. so all the services will be Costlier and this one of the Disadvantages of GST Bill on Common Person.   
  • There are some retail products where the Tax rate is only 4 % but with GST it will be costlier like Garments and cloths.  
  • The control on business will be of state and central government so it may be some complex for businessman.
  • All credits will be online and some penalties are like criminal activity. So it is threatening for small businessman who are now free from Taxes. 
  • GST is also having three type of taxes and all have to be maintained


so Above are the advantages and disadvantages of GST Bill in India and as per me it will be more comfortable than the existing Tax Process in India

Also read

Effects of GST Bill on Products & services

Benefits of GST Bill on Common man




Wednesday, 3 August 2016

Benefits of GST Act on Taxpayers


GST is mostly required for uniform indirect taxes in India and believes that One nation one Tax. There are different-2 type of indirect taxes in the country and states.

The main benefits of GST on taxpayers are : multiple taxation, make India as a one market , goods and services at one rate in all over India, helps manufacturers as reduce taxation in them
Benefits from  GST.

Aside from full remittance of credit, there are a few different benefits  of presenting a GST in India. 
I am mentioning the benefits of GST Bill as under :-

  • Reduction in costs:                                                  Due to full and consistent credit, makers or merchants don't need to incorporate expenses as a piece of their expense of creation, which is a major motivation to say that we can see a diminished in costs. Be that as it may, if the administration tries to present GST with a higher rate, this may be lost. 
  • Fewer Taxes :                                                            with the implementation of GST in India one of the benefit of GST for Taxpayers is that they have to pay lesser taxes like Service Tax, octroi, Excise Tax, sales tax, central sales tax and may more. 
  • Increase in Government Revenues:                        This may appear to be somewhat unclear. In any case, even at the season of presentation of VAT, general society incomes really went up as opposed to falling in light of the fact that numerous individuals turned to paying expenses instead of sidestepping the same. Notwithstanding, the legislature may wish to present GST at a Revenue Neutral Rate, in which case the incomes won't not see a noteworthy increment in the short run.
  • Less consistence and procedural expense:              Instead of keeping up enormous records, returns and reporting under different diverse statutes, all assessees will discover agreeable under GST as the consistence expense will be lessened. It ought to be noticed that the assessees are, by and by, required to keep record of CGST, SGST and IGST independently. this is the main benefit of goods and services tax for common man.
  • Move towards a Unified GST:                                  Internationally, the new taxation act is constantly favored in a bound together frame (that is, one single taxation for the entire country, rather than the double taxation position). In spite of the fact that India is embracing Dual GST investigating the government structure, it is still a decent move towards a Unified GST which is viewed as the best strategy for Indirect Taxes.

The GST is a decent sort of assessment. In any case, for the effective execution of the same, we should be mindful around a couple of perspectives. Taking after are a portion of the elements that must be remembered about GST:

•             Firstly, it is truly required that every one of the states execute the GST together and that too at the same rates. Else, it will be truly unwieldy for Businessman to consent to the procurement of the law. Further, GST act will be exceptionally favorable if the rates are same, on the grounds that all things considered charges won't be a component in speculation area choices, and individuals will have the capacity to concentrate on productivity and will be benefited by this act.

•             For smooth working, it is essential that the GST plainly sets out the assessable occasion. In the blink of an eye, the CENVAT credit manages, the Point of Taxation Rules are corrected/presented for this reason as it were. Be that as it may, the principles ought to be more refined and free from equivocalness.

•             The GST Act is a destination based assessment, not the production one. In such circumstances, it ought to be obviously identifiable as to where the products are going. This might be troublesome if there should be an occurrence of administrations, since it is difficult to distinguish where an administration is given, hence this ought to be appropriately managed. govt has to do his best to make GST beneficial for Taxpayers


•             More mindfulness about GST and its favorable circumstances must be made, and experts like us truly need to take the onus to accept this obligation.

there are many other advantages of GST act on tax payer which we come to know later and there are as well some disadvantages of this act which will be revealed after implication of the same.

Also Read
Taxation On Business In India


why GST Bill is important in India

why GST bill is important in INdia
Why there is Demand and importance of GST (Goods and Services Taxation)
As we heard from a long time that GST is a taxation process which will led to single taxation by evading other so many taxes.  I start by detailing on significant concept of – spilling impact of taxes. Current system of indirect taxation is like “Taxes are applied on Taxes”.
I describe the importance of GST in India hereby with an Example : in earlier Times –  X  is a seller of goods and sells to Y  with an amount inclusive of sales tax, and after that Y  again sells the same goods to Z  charging the sales tax. While Y in process of calculating the sales tax liability, Y had incorporated the  tax paid on purchase from X, hence Y is charging the Tax Upon The previous Tax Paid by Him.

Above was happened in earlier years when there was no VAT. Afterwards VAT was introduced and at all stages of sale and purchase the tax was collected on over and above the tax collected at earlier stage. With this the input credit and out put tax terms are launched and tax liability of dealers are minimised
Now  the GST which is showing very important in India. The meaning and implication of the goods and service tax bill are described below.
 "Goods and Services Tax Act" named as GST would be a thorough roundabout expense on production, deal and utilization of merchandise and administrations all through India, to supplant charges collected by the Central and State governments. Goods & Services assessment would be exacted and gathered at every phase of offer or buy of products or administrations in light of the info charge credit strategy. 


This technique permits GST-enlisted organizations to claim charge credit to the estimation of GST they paid on buy of products or administrations as a component of their typical business action. Assessable merchandise and administrations are not recognized from each other and are burdened at a solitary rate in an inventory network till the products or administrations achieve the shopper. Authoritative obligation would for the most part rest with a solitary power to require charge on products and services. Exports would be zero-evaluated and imports would be demanded the same duties as local merchandise and administrations holding fast to the destination standard.
 The presentation of Goods and Services Tax (GST) would be a huge stride in the change of aberrant tax assessment in India. Amalgamating a few Central and State charges into a solitary duty would alleviate falling or twofold tax assessment, encouraging a typical national business sector. The effortlessness of the expense ought to prompt simpler organization and authorization. From the buyer perspective, the greatest preferred standpoint would be as far as a lessening in the general taxation rate on products, which is as of now assessed at 25%-30%. the main importance of GST in India is that it will reduce the Taxation.
 What changes there would be if India dispatches GST-"The expense rate under GST might be ostensible or zero appraised until further notice. It has been proposed to protect the incomes of the States from the effect of GST, with the desire that at the appointed time, GST will be exacted on petroleum and petroleum items,". As per current pastor for state for Finance Mr. Jayant Sinha, the legislature has guaranteed conditions of pay for any income misfortunes brought about by them from the date of presentation of GST for a time of five years. that's why gst is important in India.

 GST  MODEL


the GST model is also has three types of returns to be filled as per the laws and conditions. 

SGST – State GST, by State Govt.
CGST – Central GST,  by  Central Govt.
IGST – Integrated GST,  by Central Govt.
Also read