GOODS AND SERVICES TAX

Salient Features of Central Goods and Service Tax Act 2017

  1. One Nation One Tax - Single Indirect Tax––
    1. GST eliminates the Cascading Effects of Tax on Tax in India.
    2. The goods and service tax is a single tax rate to goods and services based on the Harmonized System of Nomenclature (HSN). The GST rates vary from 0% to 28% depending on the nature of the goods or services.
  2. Input Tax Credit

    Business entity can claim the tax paid on inputs. This avoids the double taxation and reduces the tax liability.

  3. Turnover Threshold for GST registration

    Under Section 22 of GST Act 2017, the aggregate turnover of supplier exceeds threshold limit of Rs.20 Lakhs for taxable supply of goods or services or both is liable to be registered under GST Act.

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