Question 1. WHAT IS GST?
Answer : Abbreviation of Goods and Service Tax. GST is a 1 indirect tax on goods and services throughout India. It makes INDIA one unified common market. Officially known as the Constitution (One Hundred and Twenty Second Amendment Bill), 2014. GST is Governed by GST Council (setup by Hon’ble President of India- Shri Pranab Mukherjee) and its Chairman is Union Finance Minister of India – Shri Arun Jaitley. Slogan for GST is “one nation one tax”.
Question 2. WHAT ARE THE BENEFITS OF GST IN INDIA?
Answer : After GST rollout essential food items like food grains, rice, wheat are taxed at zero rate. (Goods become cheaper). Also, there is lower rate (i.e. 5%) on education, health care, spices, tea & coffee(except instant), edible oil.
Question 3. WHAT ARE THE COMPONENTS OF GST?
- CGST (Central GST):- tax levied and collected by Central Govt.
- SGST (State GST):- tax levied and collected by State Govt.
- IGST (Inter-State GST):- tax levied and collected