Guide to Understand the GST Registration in India
What is GST? On July 1st, 2017, the Goods and Services Tax (GST) tax was introduced in India. It replaced various indirect taxes like service tax, central excise duty, value-added tax (VAT), etc. It aims to establish a common market for goods and services and simplify the tax structure. Under GST, taxes are subjected to the value-added at every stage of the supply chain, from the manufacturer to the retailer. It is a consumption-based tax, which signifies that it is applied only when a final consumer purchases a product or service. Goods and services are taxed based on the category they fall into. Basic necessities like food items, education, and healthcare services are taxed at a lower rate of 5% while luxury goods like cigarettes and aerated drinks are taxed at a higher rate of 28%. The GST has significantly affected various sectors of the economy. The tax rates real estate industry has been affected the most, as the tax rates have increased from 5.5% to 12% on under-constructi...