What is full form of GST
- 21st Jun, 2019
The full form of GST is Goods and Service Tax.
GST short for Goods and Service Tax. It is an indirect tax which is levied on the goods and services. It was introduced by the government of India from July 2017 with a motive to replace the existing complex indirect tax system which comprised of many taxes like sales tax, luxury tax, VAT, Central excise duty, etc.
Frequently Asked Questions On GST.
1. Why is the GST bill important for India?
GST is considered the biggest tax reform in the Indian economy. It is important for the Indian economy as it aims at removing all different types of indirect taxes which will remove the long existing problem of double taxation and will bring out a simplified tax structure throughout the nation. Also, it will bring all the state economies together as there will be only one tax which will lead to a unified market.
2. Is GST a boon or bane for India?
GST one of the biggest tax reform in India faces both praises and criticism but if we take a deep look with the proper understanding of the tax system we will see that GST is definitely a boon for India. If we look stepwise then, first of all, it removed near about 16 indirect taxes. After the implementation of GST, it has become an easy process to start and promote a business because of its simple tax regime. Also, the revenue collection increased as tax evasion became impossible. And foremost it united India under the label of "one tax one nation".
3. How are VAT and GST different?
VAT stands for Value Added Tax while GST stands for Goods and Service. Both are indirect taxes but there are major differences in them. The VAT is applied only on goods while GST on both goods and services. The VAT is calculated at the market price of the good while GST is computed using the selling price.
4. When and where GST was first implemented?
France was the first country in the world that implemented GST. It was implanted in 1954.
5. What documents are need while you register for GST?
The documents needed while you go for registration for GST are-
- PAN card
- Aadhar Card
- Bank account details
- Address proof of the owner in case of the individual business.
If it's a partnership firm then -
- PAN Card
- Aadhar Card
- Address proof of all partners
- Copy of partnership deal
- Photograph of all partners
- Bank account details
- Address proof of place where business runs are required
6. Which software is the best for GST accounting?
The most popular software for GST accounting in India is Tally ERP 9 followed by MARG GST, QuickBooks, Profit books and Busy GST.
7. What do you mean by Dual GST in the context of India?
Dual GST is a tax structure where GST is levied on two levels. In India, the GST is called dual GST because both central and state have the power to collect taxes as there are two branches Central Goods and Service Tax (CGST) collected by Central and State Goods and Service Tax (SGST) which is paid to the state. The CGST and SGST are applicable to all forms of transactions of goods and services.
8. Discuss the disadvantages of GST in India?
As each coin two sides similarly GST has some flaws and drawbacks some of which are:
- It is said that after the implementation of GST some industries like textile and aviation will become more expensive as they will fall under above 12 % of the GST slab.
- It also caused a huge impact on the real estate market as its demand went down. Also, insurance premiums and items like basic luxuries (online booking, mobile phones, and aerated drinks) became costlier.
9. How much does it cost for GST registration?
There is no registration fee charged while you register for GST. But there are some cases which require a digital signature and it may cost between 1000-1500.
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