Here's how the Goods and Services Tax (GST) works
by Arshiya Dey and Tauseef Ahmed on 02/02/2017
In our previous blog post we briefly covered a quick introduction to GST. Today, we will talk about how the proposed Goods and Services Tax is expected to work with Flowchart image references for your understanding.
Under the GST system of taxation, you will need to keep in mind the following:
GST for transactions within a State.
For all transactions within a state (goods or services), there will be 2 components of GST:
Below is an example of how both the above taxes will work. The below table also explains how the credit of input taxes is available from one stage in the next stage.
GST for Inter-State transactions
The Integrated GST ("IGST") will be implemented in the following manner:
Below is an example of how the Integrated GST will work:
What are some of the benefits of GST?
We hope this article helped you understand the GST framework much better.
Note: The content/ information mentioned above with respect to GST has been derived by Amazon Seller Services Private Limited ("Amazon") from the Press Information Bureau and GSTIndia.com is only for informational purposes. Amazon does not guarantee whatsoever as to the accuracy; completeness or usefulness of any information contained herein and assumes no responsibility for consequences resulting from the use of the information thereof. Please reach out to your Tax Consultant or GST service provider for any clarifications/ queries regarding GST.