The evolution to GST or Goods and Services Tax Enrolment has commenced in India, with prevailing VAT and service tax registration holders being assigned GST or Goods and Services Tax Registration number to standardize the two major indirect tax codes. In this article, we look at the meaning behind a GST or Goods and Services Tax registration number.
GST or Goods and Services Tax Registration number is a 15 digit identification that is assigned to each taxpayer based on PAN number and State of the applicant. In GST or Goods and Services Tax registration number, the first two digits represents the State Code, followed by the next 10 digits indicating the PAN of the applicant, one digit signifying entity code, one digit is left blank and the last digit is a check sum digit.
GST, an acronym for Goods and Services Tax, is the latest buzz in the Indian economic scenario courtesy of it coming into play from 1st July, 2017 onward. As a form of taxation GST or Goods and Services Tax is employed by more than 150 countries the world over, the honour of being the first belonging to France and that of being the most recent going to Malaysia. Whether or not this system of unified taxation will work in the world’s largest democracy, namely India, is something that will become apparent only after it has been implemented for at least six months at a stretch.
India progressed a step closer towards executing the Goods and Services Tax (GST) after the centre and the states hit a consensus on the rates and structure of the aspiring tax reform. However, the second and final day of the fourth Goods and Services Tax (GST) council convention on Friday is likely to be prickly, with both sides set to debate the sharing of administrative powers under the new tax regime.
The Goods and Services Tax (GST) has been one of the key things that has grasped the attentiveness of the market given its repercussions on earnings of companies. The government has kept a hefty number of articles under 18% tax slab. The government classified 1211 items under diverse tax slabs.
Here is the comprehensive item wise list of Goods and Services Tax (GST) Slabs 2017.
Goods : No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.
Services : Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST.