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GST in India 2021
GST is perhaps the biggest tax-related reform in India since Independence bringing uniformity in the taxation structure and eliminating the cascading of taxes that was levied in the past. The GST Council meets from time to time to revise the GST rates for various products. Several states and industries recommend reduction in GST tax rate for various items which are discussed in these meetings.
GST stands for Goods and Services Tax. Following are the various types of GST.
- CGST –Central GST
- SGST –State GST
- IGST –Integrated GST
At the time of GST implementation former Finance Minister, the late Mr. Arun Jaitley said that the government wanted to keep the GST rates close to the original rates. But there were differences in case of some items because of the changes in the economy as well as customer preferences. Some commodities were kept in the high tax bracket (18-28%) but on scrutinizing the list, they found that these commodities should be considered as necessities and not luxuries. This is why the GST rates were revised for commodities such as notebooks, exercise books,
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FAQs on GST in India PDF 2021
[sc_fs_multi_faq headline-0=”h2″ question-0=”What are the different GST rates on goods?” answer-0=”Currently five different GST rates are applicable on goods. These are 0.25% (eg. cut and semi-polished stones), 5% (eg. household necessities), 12% (eg. computers), 18% (eg. hair oil) and 28% (eg. aerated drinks ). ” image-0=”” headline-1=”h2″ question-1=”Who decides GST rates?” answer-1=”GST rates are decided by GST Council. The council has 33 members, including the State Finance Ministers. The Council is headed by the Union Finance Minister. ” image-1=”” headline-2=”h2″ question-2=”What are the various types of GST?” answer-2=”There are 3 types of GST: 1. SGST 2. CGST 3. IGST” image-2=”” count=”3″ html=”true” css_class=””]