The Government of India implemented the GST in the country on July 1, 2017. It is now about to be six years old. Despite this, even today many people do not have detailed knowledge of GST. GST is an indirect tax applicable to manufactured goods and services. Previous merchants had to pay different types of taxes, such as service tax, sales tax, customs duties, surcharges, and excise taxes. In such a situation, the government had implemented GST to simplify the tax process. Let us tell you about some internal and important GST terms today.
GST- GST stands for Goods and Services Tax. This tax must be paid by clients or businessmen for the purchase of goods or consumption of services. It was implemented instead of different types of taxes like excise duty, VAT tax, sales tax, service tax, etc.
GSTIN- GSTIN stands for Goods and Services Tax Identification Number. This is a 15-digit number that our PAN number is also linked to. You can also call it GST account number. Tax related transactions and declarations are submitted only through the GST number.
CGST- CGST stands for Central Tax on Goods and Services. It is related to interstate transactions. When any good or service is supplied within the state, in this situation the tax paid to the Central Government is called CGST.
SGST- SGST stands for State Tax on Goods and Services. When goods or services are supplied within the state, in this case the tax paid to the state government is called SGST.
IGST- IGST ka complete form hota hai Integrated tax on goods and services. When merchants or businessmen between two states make a deal regarding any good or service, it is called the Integrated Goods and Services Tax. You can call it a combination of CGST and SGST. The merchant has to pay this tax only to the central government.
reverse charge- Reverse charging is a tax procedure system, in which the buyer of goods or services collects the tax and deposits it with the government. Since the responsibility for collecting the tax on the goods or services is transferred to the buyer instead of the seller, it is called a reverse charge.
Mixed Supply- The sale of two or more goods and services at a fixed price is called a mixed offer. For example, if a trader has sold a refrigerator, a television, an air conditioner and a sofa set for Rs 4 lakhs, then such sale falls within the scope of mixed supply. In the case of mixed supply, the tax rate is determined taking into account the goods on which the maximum tax is applied.
Composite supply- Composite supply means the sale of other goods and services together with the sale of a commodity in such a way that the sale of other goods and services is naturally linked to the main commodity. For example, if a merchant also provides packaging and transportation services for electrical items, it is called a composite supply.
Continuous Supply- Continuous supply means the supply of goods or services within a specific period of time under a specific contract. It also includes installations provided through wire, cable or pipe. The provider of said goods or services issues invoices periodically or at a fixed term.
TIC- ITC stands for Input Tax Credit. In this case, the customer gets credit against any GST paid in the past. Later, the client can use these credits instead of money to pay any other GST.
GSTR- GSTR stands for Goods and Services Tax Return. This is a government form, which is compulsorily completed by all registered GST taxpayers for each GST number. In this, provision has been made for a total of 22 types of GST refunds.
GST Compliance- The GST compliance rating is a score given by the government to a business. So that other companies can see how much they are following the rules of the tax department. Scoring is based on parameters such as timely submission of monthly and annual returns, submission of input credit details used, payment of taxes, etc.
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