Central goods and Service Tax (CGST) and its Features

Central goods and Service Tax (CGST) is one of the four elements of GST in India. It is an indirect tax levied and by the central government on intra-state supplies. Such supplies do not embrace alcoholic liquor for human consumption. Like different taxes under GST, this tax is additionally levied on the transaction value of goods and services equipped as per section 15 of the CGST Act, 2017.

However, the transaction price is nothing—the worth paid or collectable for the given supply of goods or services. CGST is levied and collected as per Central goods and Services Tax Act, 2017 scan read CGST Rules, 2017. Also, as per the GST law, the liability to pay CGST would arise at the time of offer of goods or services as laid out in section 12 and 13 of the CGST Act, 2017. Additionally, SGST would be levied on the constant intra-state offer of goods or services together with CGST. However, SGST is governed by the SGST Act, 2017.

CGST Act, 2017

CGST Act, 2017, governs CGST. This Act was introduced to outline the provisions for levying and assortment tax on the intra-state offer of goods and services by the Central government and all the problems associated with constant. CGST Act, 2017, governs CGST. This Act was introduced to stipulate the provisions for levying and assortment tax on the intra-state offer of goods and services by the Central government and all the issues associated with constant.

Accordingly, CGST Act, 2017 contains provisions about:

• Tax liability for Composition dealers
• Payment of Tax
• Time of offering of goods and Services
• Value of taxable supply
• Input tax credit
• Registration underneath GST
• Tax Invoice
• Tax Returns
• Reverse Charge Mechanism

From time to time, the central government lays out rules to amend Central goods and Service Tax Rules, 2017. This can be undertaken to improvise the prevailing Central goods and Services Tax Act, 2017, and CGST Rules, 2017. Consequently, since the introduction of GST in July 2017, the Central Government has been making amendments. THE GOVERNMENT BROUGHT the CGST amendment Act 2018 into force on January 29, 2019, via Notification No. 02/2019 – Central Tax. This can be an Act extended by the government to create further amendments to CGST Act, 2017.

The government is nonetheless to bring into force the CGST Amendment Act, 2019. However, the government has already notified the subsequent amendments to the CGST Rules, 2017 via notifications within the year 2019.

Features of CGST

• A business entity having an Associate in Nursing combination annual turnover of up to Rs 40 Lakhs in case} of products and Rs 20 Lakhs in case of services is not needed to register under GST. However, such an entity will register under GST voluntarily. For Special category States, the edge limit for GST registration is Rs. 20 lakhs.
• State-wise, single registration underneath GST must full fill GST compliance like filing returns, paying taxes etc. And most of the compliance is finished online.
• A single return has to be filed by the remunerator state-wise. Such a return must report all the supplies whether made within the state, outside the state or exported outside India and pay taxes on such supplies. These taxes include CGST, SGST/UTGST and IGST.
• A business entity is having a combination annual turnover of up to Rs. 1.5 crores can opt for a composition scheme under GST. A composition dealer must pay tax at a set rate under GST rates charged to everyday taxpayers under GST. Moreover, the compliance under the Composition scheme is minimal.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.