NTA UGC NET Commerce: Unit 09: Legal Aspects of Business (PART 02)

 

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Unit 09

Legal Aspects of Business

PART 02

 

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MCQ: GST was implemented in India from
a) 1st January 2017
b) 1st April 2017
c) 1st March 2017
d) 1st July 2017 

 

• The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.

• 1st country – France (1954)

• Introduced as the 122nd Amendment Bill of the Constitution of India

• Governed by GST Council – Chairman: Finance minister

• Dual Tax system (concurrently levied by Central and state govt.)

 

• It is an indirect tax which has replaced many indirect taxes in India such as the

 

• Levied on the supply of goods and services.

• Consumption based or destination based tax

 

GST tax structure

01. Zero rate (0%)

• Tax is nil

• Essential items 

02. Lower rate (5%)

• Commonly used goods

03. Standard rate (12% and 18%)

04. Higher rate (28%)

05. Special rates –

• 0.25% - rough precious and semi-precious stones

• 3% - gold 

 

GSTN :

• Goods and Service Tax Network

• A non-profit, non-government organization.

• Manage the entire IT system of the GST portal

• Mother database for everything GST

• Government to track every financial transaction

• Maintaining all tax details.

GTIN:

• Goods and Services Tax Identification Number

• Unique business identity

• Contains 15 digits alpha-numeric PAN based code.

HSN Code:

• Harmonized System of Nomenclature

• Developed by the World Customs Organization (WCO)

• Classifying goods all over the World in a systematic manner.

• HSN contains six digit uniform code.

 

 

SAC

• Service Accounting Code

• Classify services falls under GST

 

Input Tax Credit:

• Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs

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