What is GST?
As per the Goods and Service Tax act which was passed on 29th March 2017, many indirect taxes in India has replaced by a single indirect tax namely GST that is applicable for the entire country. On 1st July 2017, this Goods and service tax came into effect.
This GST law is a multi-stage, comprehensive, destination-based tax. This GST tax in India levied on every value addition.
We can simply consider this tax as an indirect tax levied on goods and services. In India, this indirect tax has replaced many other previously existed indirect tax laws.
Now with G00ds and Service Tax, the public needs to pay tax at every point of sale. The public will need to pay Central GST and State GST in case of inter-state sales.
To completely understand GST, we need to go thoroughly through the definition of GST. GST is defined as a destination-based, multi-stage tax that applies to every value addition.
Value addition: For making biscuits, the manufacturer will need to pay for buying flour, sugar, and many other materials. The value of the product increases in mixing and baking four and sugar into biscuits.
The value of this biscuit further increases when the manufacturer sells them to a warehouse where they are labeled. On retail marketing, the price of biscuits further increases as the retailer invests in the marketing of biscuits.
The GST will be applied to all these value additions.
Multi-stage: It refers to multiple changes of hands in a supply chain that a good goes through. In the supply chain, a good go from manufacturer to final consumer.
Table of Contents
Good and service tax will be levied on every stage which includes:
- Purchase of raw material
- Manufacturing
- Transport of finished goods
- Wholesale
- Retail
- Sale to the final customer.
As this public need to pay tax on all these stages, this makes it a multi-stage tax.
Destination-Based:
The entire tax revenue will go to the state where it is finally sold. For example, good is manufactured in Maharastra and the final customer is in Karnataka. Karnataka will get the entire tax.
How to do GST registration online?
Every dealer who has an annual turnover of more than 20 lakhs will need to register GST. Here we stepwise guide you on how to register online:
First, go to the portal for GST, then click on register.
The next step is to fill the details. The detail you will need:
First, go for new registration.
Now click tick on “I am a Taxpayer”.
After that select state and district.
Now fill the detail of your business including the name of your business and your PAN card. You will receive OTP on email and your registered phone number.
Now click on proceed.
The next step is to fill the OTP and tap on continue.
Now you will get a temporary reference number. Note down this number.
Now again go to the G00ds and Service Tax portal and hit on Register now.
Now fill the temporary number and captcha code and proceed further.
Again you will receive OTP on your registered number. Fill that OTP and proceed.
After this, you will status. Here you can click on the edit icon.
Here you will see 10 sections. Fill the required details and attach appropriate documents like photograph, the constitution of the taxpayer, Bank account detail, proof for the business place, and authorized form.
After filling details on the verification page, click on the declaration and submit your application by using either DSC, e-sign or EVC.
Now you will receive a success message and the application Reference Number on your registered email id and mobile number. With your ARN, you can check the ARn status in the GST portal.
How to calculate Goods and Service Tax?
To calculate G00ds and Service Tax, you can use the formula:
GST Amount: [[Original cosy * GST %]/ 100
Net price: Original cost ++ GST.
Remove GST: Original cost- [Original cost* {100/ (100+GST%)}]
Net price: Original cost – GST Amount.
GST state code:
If you Want to know about all the GST state code then see below:-
01-Jammu & Kashmir
19-West Bengal
02-Himachal Pradesh
20-Jharkhand
03-Punjab
21-Orissa
04-Chandigarh
22-Chhattisgarh
05-Uttarakhand
23-Madhya Pradesh
06-Haryana
24-Gujarat
07-Delhi
25-Daman & Diu
08-Rajasthan
26-Dadra & Nagar Haveli
09-Uttar Pradesh
27-Maharashtra
10-Bihar
28-Andhra Pradesh (Old)
11-Sikkim
29-Karnataka
12-Arunachal Pradesh
30-Goa
13-Nagaland
31-Lakshadweep
14-Manipur
32-Kerala
15-Mizoram
33-Tamil Nadu
16-Tripura
34-Puducherry
17-Meghalaya
35-Andaman & Nicobar Islands
18-Assam
36-Telangana
37-Andhra Pradesh (New)
So these were all about the GST state code list. Hope you liked the article please feel free to share it with your friends.
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