GOODS AND SERVICES TAX (GST) SALIENT FEATURES

By enacting the Goods and Services Tax Act, also known as GST, the Indian government has combined numerous central and state taxes into one single tax, including excise duty, service tax, central sales tax, additional custom duty, special additional duty, VAT, entry tax, purchase tax, luxury tax, entertainment tax, octroi, taxes on lotteries, baseball, and gambling, in addition to CESS and surcharge. The entire economy will be subject to a single tax system, turning the whole country into a single market.

State-specific and PAN-based registration for GST is required. In each of these states or union territories where he makes supplies, the supplier must register. A person who is "unregistered" outside of the state is one who is registered in one state.

Both the State GST (SGST) and the Central GST (CGST) must be paid on all transactions for both goods and services. An entity may take full credit for taxes paid on any supply of goods or services, or both, used or intended for use in the course of business. It is a consumption tax on goods and services that is based on destination. As a result, the SGST credit must be transferred to the destination state as Integrated GST (IGST). Each and every Inter-State Transaction will be subject to IGST.