GST Implementation

OVERVIEW

Goods and Services Tax (GST) is an indirect tax, (or consumption tax) used all over India on the cost of production of supply of goods and cost of services. It is inclusive of almost all the indirect taxes except a few state taxes. it is the GST is imposed at every step in the production process, with removing off cascading effect, GST added on every sept will be adjusted on other steps other than the final consumer and that is called GST is a destination-based tax.

Depending on its size, a company may be legally required to have their financial statements audited by a qualified auditor, and audits are usually carried out by accounting firms.

IN GST tax rate are divided into five different category of tax slabs rate for collection of tax – 0%, 5%, 12%, 18% and 28%. However, some goods still pending to cover in GST like those petroleum products, alcoholic drinks, and electricity are and still VAT & other acts applicable which levy by state governments in a particular state, as per the previous tax system. In GST a special rate on some goods (rough precious and semi-precious stones) (0.25% ) and 3% on gold. apart from it, a cess of 22% is applicable on the luxury item on other rates on top of 28% GST applies to few items like aerated drinks, luxury cars, and tobacco products. Pre-GST period, the statutory tax rate for most goods was different, Post-GST, most goods are expected to be in the 18% tax range.