What is GST
Goods & Services Tax is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition.
Why you need GST software now
Goods & Services Tax will change accounting and invoicing processes across industries. After July 1, businesses will have to adopt software to manage their GST local and GST central Taxes.To do this Bizwinger software which is GST ready and will help you with you GST taxes.
GST Components
From July 2017, India will follow the dual-GST model which is made up of the following components:
1) SGST - A form of GST collected by the state government
2) CGST - A form of GST collected by the central government
3) IGST or the Integrated GST (SGST + CGST) will be collected by the central government.
Both the taxes will be levied when sale of goods and services take place within a same state.
GST Tax Slabs
Zero rate The zero rate tax is a nil tax that is applied on goods and services. This is equivalent to tax exemption and does not have any effect on the price of the product. Items that are eligible for zero rate tax are decided by the government.
Lower rate A lower rate of 5% will be applied on the items of mass consumption.
12% and 18% rate There are two standard rates that have been finalized by the GST Council: 12% and 18%. Mostly Service industry will come in this slab. All taxable services that are currently charged at 15% will now be moved to the 18% bracket. This could increase the price of a majority of services that are currently offered.
Higher rate A higher rate of 28% will be levied on white goods. This includes items such as cars,AC's etc
dditional cess The additional cess, which had been a topic of debate since the proposal of the GST rates, is now finalized.