GST Filing

GST is a tax levied when consumer buys any good or service. There are three components of GST-

  • Central GST (CGST) it will be Levied by Centre
  • State GST (SGST) It will be levied by State
  • Integrated GST (IGST) It will be levied by Central Government on Interstate supply of Good and Services
  • Interstate supply of Good and Services
  • How GST differs from other taxes

  • Currently there are many indirect taxes. We all know about Service Tax, Vat, Luxury tax etc.
  • Now, what GST does is that it combines all these taxes into one, i.e. subsumes all other indirect taxes. It is done for all the Central level and State level taxes.
  • The nature of GST is that it taxes only the final customer. Hence the cascading of taxes is avoided and production costs are cut down.
  • Following is the list of the taxes that are subsumed by GST

  • Central Level Taxes Central Excise Duty, Additional Excise Duty, Service Tax, Countervailing Duty and special Additional Duty of Customs
  • State Level Taxes State Value Added Tax or Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase tax, Luxury Tax, Taxes on Lottery, Betting and Gambling
  • So, this means that GST clubs almost all indirect taxes together that are levied by central and State Governments.