The GST was rolled out in India on July 1, 2017. It is the most extensive tax reform undertaken in the country, integrating several indirect taxes into a single system. GST has been considered to be an easier process of tax management, which provides more clarity and unity in the structure. For the careers of those who want to grow in this tax field, there could be no better starting point than a GST course in Kolkata.
What is GST?
GST is an indirect tax that has subsumed most of the older taxes, which include excise duty, VAT, and service tax. The Goods and Services Tax Act was passed on March 29, 2017. GST has come into effect from July 1, 2017. The GST system constitutes three major divisions:
1. Central Goods and Services Tax(CGST) All the amount of CGST recovered on sales occurring within a state goes to the central government.
2. State Goods and Services Tax(SGST) SGST would be a state taxation levied by the state governments on all transactions occurring within their respective states, and such State’s tax revenue shall accrue to the State.
3. Integrated Goods and Services Tax (IGST): Central Government collects IGST on the sales or purchases made between states or imported from outside the country. There is sharing of revenues between the Central and State Governments.
In short, within a state, CGST and SGST are levied. For inter-state sales, IGST is levied.
GST Tax Slabs
India’s GST has four tax rates, keeping in view that there are different products and services to be required at different levels. It is divided into:
1. 0%: Tax-free essentials such as unprocessed food, healthcare, and education.
2. 5%: For essential products such as packaged food, footwear, and public transport service.
3. 12%: Packaged foods, computers, and construction services.
4. 18%: Goods such as electronics, home appliances, and restaurants.
5. 28%: Cars, air conditioners, high-end electronics, and so many other high-value commodities fall under this bracket.
Gold and like jewelry would attract a 3% tax.
GST Benefits
1. No More Tax on Tax Before the GST regime, it is often a case of tax on tax, which happens to decrease the actual burden of tax on goods and services.
2. Easy Compliance: With online registration, making returns, and filing of payments regarding GST, there has been easy compliance with the laws and a reduction in administrative corruption.
3. Single National Market: The newly introduced GST erased the previous tax system-related state barriers for the free movement of goods and services.
4. Economic Integration: All these changes in the taxation structure have reduced the burden on businesses; thus, it encouraged entrepreneurship and led to industrial growth, pushing the economy forward.
5. Less Burden on Consumers: GST removed many levies and thus the final cost on consumers regarding goods and services was reduced.
If anyone wants to gain their knowledge about Finances then Accounting, Taxation, GST and Tally Course in kolkata are very crucial.
Challenges Faced by GST in India
1. Complex Compliances: Many small and medium enterprises do not consider GST compliances as easy mainly because of the number of returns to be filed and deadlines.
2. Technical Glitches: The GST portal logs a technical glitch due to heavy traffic during heavy usage, though that happens less often.
Impact on Small Businesses: For example, the compliance cost of GST, being investment in accounting software and hiring professionals, became an overhead for most small businesses.
Importance of GST and Taxation Courses
GST training has come of age with GST, and now taxation Course in Kolkata becomes much more important. GST classes in Kolkata enable proper understanding of the GST system, tax filing, and compliance.
For more exposed knowledge, it provides a taxation and Accounting course in Kolkata that addresses the direct and indirect taxes of India. It equips students with accounting principles, Tally software, and tax practices for implementation in the financial platform.
Conclusion
Despite certain issues relating to the initial implementation of GST, it has been transformational for the tax system in India. Long-term benefits will keep unfolding for businesses, the economy, and consumers. For anyone with an interest in taxation, the important step forward is to take a GST course as it keeps one updated regarding the latest tax laws and understanding the new tax system
