Summary: Get to know few of the best terms that will define the GST realm in the coming age of unprecedented economic reform.
It has been more than 1.5 months ever since the passage of the GST bill, but if you have still failed to comprehend its varied intricacies in that case with the help of this blog you will come to know about the various terminologies and financial nomenclature that will help you better understand the GST bill. So, brace yourself and begin with the swift start that will help you understand GST in the best possible manner.
The regulatory body that has been entrusted with the responsibility of handling the taxation and economic affairs. This segment of the GST has been headed by our Finance Minister Mr. Arun Jaitley and it has been delegated the responsibility to provide important financial recommendations to state, Union Territories and the center.
Goods and Service Tax network is a non-profit private limited company that has been given the responsibility to help bolster the GST structure with their smart IT and technical support. The Government of India is holding 24.5% of the stake in this company. The S-a-a-S provided by the company will help the tax payers to register themselves and file returns and this will also help in building the technology network of the country.
Central Goods and Service tax will replace its predecessors like central excise duty, central sales tax, central service tax, excise duty and custom tax. All these taxes will be bundled up into one uniform structure called the Central Goods and Service Tax.
The integrated Goods and Service Tax would be imposed on the goods based on transfers and they will be taxed accordingly. In the IGST the government will do away with toll charges and other taxes that make fast movement of the goods nearly impossible.
Input Tax Credit
The Input Tax Credit has been termed as a backbone of the GST system. The GST system will control the price mechanism and prevent the sellers to charge the tax paid to the customers. With such an approach the interest of the customers will be kept under check and it will help the economy of India to evolve rapidly.
This is a special restraint put on the sellers to pass on the benefits to the immediate customers. If they are charging back the benefits to customers even after they have received the Input Tax Credit will lead to penal charges. This will help defeat unethical practices of the businesses who are on an accelerating spree to extort money from the customers.