Goods and Services Tax – GST will be an important step and next logical indirect tax reforms in India. The government want to implement GST from 1st April 2016, however, it got delayed due to NDA does not have a majority in Rajya Sabha. First of all, you should understand Goods and Services Tax. It is a comprehensive tax applies to manufacture, sale and services of goods and services. You should have proper knowledge about the GST in details to understand the GST bill format in an easy way. Under new guidelines format, rules are strict as it should cover details like billing and shipping address, supplier’s full name, place of supply, rate, State Code and HSN Code. This article will help you know all aspects of invoicing under GST.
Worldwide GST Popularity:
GST is very popular and effective tax system in many developed countries. India also needs some advance changes in the old tax system. After the successful effect of GST in different countries, India Government decided to implement GST in India. The GST is successful in Australia with 10% rate. The GST rate in France is 19.6%. The rate of GST in Canada is 5% while Germany GST rate is 19%. Japan GST rate is 5% and Singapore rate is 7%.
Rates of GST in India:
GST rate is different as per various categories like daily basic use, car and bike. There will be a special rate of precious metals like gold and silver. It varies from 5% to 23% rate of GST on various goods and services. It affects the cost of many products that is very positive reform in indirect tax. The GST is a new idea that provides maximum positive benefits to governments and people in many ways. You should aware of getting the valuable information about the GST that effect the economy of India in a unique way.
Understand GST Bill Format with an Example:
Suppose you imported goods for Rs 10000/. You have to pay 10% basic customs duty on your imported product that is 1000. The cost of imported product goes to 11000.The manufactured goods were sold within the state 45000 plus applicable GST. Now add CGST on import product at 5% rate that is 550. Then you have to add SGST on import at 7% that is 770. The total cost of imported product is 12320. You can get the calculation of sale value after import sale value is before tax is 45000. Rate of CGST and SGST is 5% and 7% respectively. Compute Cost, Sale value and tax payable for the transaction. Now add 5% CGST on import product that is 2250 and SGST on import product at the rate of 7% that is 3150 with total it becomes 50400.The output tax 2250 for CGST and 3150 for SGST. You get the net payable tax for CGST is 1700 and SGST is 2380. You should understand that you have to pay customs duty of import product that helps you to see the difference between various taxes.
You can easily understand through this example the GST tax rate on import product that is beneficial for you to get to save money in single tax with GST. You should be aware to understand GST bill format.