Goods and Services Tax (GST)

GST is one indirect tax for the whole nation, which will make India one unified common market. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

GST stands for Goods and Services Tax. GST will be a single destination based consumption tax that will replace existing taxes, including CENVAT, Octroi, Sales Tax, and Excise Duty, etc. Unlike the old tax structure, where the state of origin received tax revenue, in the new GST model the state in which goods and services are consumed is the state that will receive the revenue.

The Central Taxes proposed to be subsumed under CGST include

• Central Excise duty
• Additional Excise duties
• Excise Duty levied under the Medicinal and Toiletries Preparation Act
• Service Tax levied under Chapter V of the Finance Act, 1994
• Additional Customs Duty, commonly known as Countervailing Duty (CVD)
• Special Additional Duty of Customs (SAD)
• Central Sales Tax
• Surcharges
• Central cesses.

The state taxes proposed to be subsumed under GST are:

• VAT/Sales tax
• Entertainment tax (unless it is levied by the local bodies)
• Luxury tax
• Taxes on lotteries, betting and gambling
• State cess and surcharges in so far as they relate to supply of goods and services
• Entry tax.
• Octroi.

Input tax credits can be used as follows:

• CGST input tax credits can only be used to pay CGST and IGST
• SGST input tax credits can only be used to pay SGST and IGST
• IGST input tax credits can be used to pay CGST, SGST, and IGST

This means you will need to maintain separate records of ITC utilization or refund of credit for State and Center taxes.

A common e-return for CGST, SGST and IGST is proposed in the draft law. Returns, that allow the auto-population of data from the vendors and automated matching of invoices, shall be filed online by a normal/casual taxpayer in a sequential manner within different cut-off dates. The various due dates proposed for the filing of returns are as follows:

It may be noted that most of the returns are auto generated by the GSTN system and the dealer is expected to validate the data and also fill in the missing data. It is also to be noted that the payment of the tax due, is a must for filing valid returns under the GST regime.

GST Details of The Malad Sahakari Bank Limited.