Key Features of GST and Benefits of GST, Salient Features of GST, features of gst in india. Goods and Service Tax is also known as GST in a Canadian value added tax on most goods and services sold for domestic consumption. Here we are Providing Features of Goods and Service Tax (GST) and also provide benefits of Goods and Service Tax (GST). Check key features of the proposed GST model and Benefits to Traders and Government. Now you can scroll down below n check more details regarding “Key Features of GST and Benefits of GST”
Key Features of GST, Benefits of GST or Main Features of GST
The following are the key features of the proposed GST model:-
- Dual Goods and Service Tax : CGST and SGST
- Inter-State Transactions and the IGST Mechanism:The Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supply of goods and services. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim the credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST.
- Destination-Based Consumption Tax: GST will be a destination-based tax. This implies that all SGST collected will ordinarily accrue to the State where the consumer of the goods or services sold resides.
- Computation of GST on the basis of invoice credit method: The liability under the GST will be invoice credit method i.e. cenvat credit will be allowed on the basis of invoice issued by the suppliers.
- Payment of GST: The CGST and SGST are to be paid to the accounts of the central and states respectively.
- Goods and Services Tax Network (GSTN):A not-for-profit, Non-Government Company called Goods and Services Tax Network (GSTN), jointly set up by the Central and State Governments will provide shared IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders.
- INPUT TAX CREDIT (ITC) SET OFF : ITC for CGST & SGST will be taken for taxes allowed against central and state respectively.
- GST on Imports : Centre will levy IGST on inter-State supply of goods and services.Import of goods will be subject to basic customs duty and IGST.
- Maintenance of Records : A taxpayer or exporter would have to maintain separate details in books of account for availment, utilization or refund of Input Tax Credit of CGST, SGST and IGST.
- Administration of GST : Administration of GST will be the responsibility of the GST Council, which will be the apex policy making body of the GST. Members of GST Council comprised of the Central and State ministers in charge of the finance portfolio.
- Goods and Service Tax Council: The GST Council will be a joint forum of the Centre and the States. The Council will make recommendations to the Union and the States on important issues like tax rates, exemption list, threshold limits, etc. One-half of the total number of Members of the Council will constitute the quorum of GST council.
Benefits of GST :-
- Reduction in multiplicity of taxes
- Mitigation of cascading /double taxation.
- More neutralization of taxes especially for exports.
- Development of common national market.
- Simpler tax regime.
To Government :-
- Simpler Tax System
- Broadening of Tax base
- Improved compliance & revenue collections
- Efficient use of resources.
- Automation of compliance procedures to reduce errors and increase efficiency.
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