by GST is an indirect type of tax, which has to be paid on buying any goods or any service and the buyer has to pay this tax, this tax is received by the state government and the central government.
The full form of GST is “Goods and Services Tax”. Before 2017, by removing many types of indirect type taxes like “Excise Duty, Vat, Entry Tax, Service Tax” etc. in India, a tax named GST has been brought in their place.
GST tax has been implemented in India from 1st July 2017. And GST is a completely online tax system.
Types Of GST
CGST (central goods and service Tax): – Its collected by the central government on a local State sale (intra – state sale) (example: – within Maharashtra)
SGST (state goods and service Tax): – Its collected by the state government on a local State sale (intra – state sale) (example: – within Maharashtra)
IGST (integrated goods and service tax): – Its collected by the central government for inter – state sale (example: – Maharashtra to Gujrat)
Types Of Sales Tax
If we talk about type of sales tax by keeping GST in mind, then sales tax can be divided into two parts, first local sales tax where CGST and SGST have to be paid, and second interstate sales tax where IGST has to be paid.
1 Local sales tax (SGST – CGST)
Local sale tax means a sale which is related to within state as production was also done in the same state and that production was also sold in the same state.
For example, if an item is made in Maharashtra and sold in Maharashtra, then this type of sale comes under local sales tax. Here CGST and SGST will have to be paid.
CGST (central goods and service Tax): – Its collected by the central government on a local State sale (intra – state sale) (example: – within Maharashtra)
SGST (state goods and service Tax): – Its collected by the state government on a local State sale (intra – state sale) (example: – within Maharashtra)
2 Interstate sales tax (IGST)
We call it interstate sale when any transaction takes place between the businessmen of two different states, like production produced in Maharashtra and sold in Gujarat, then there will be interstate sales tax on that product, which means IGST will have to be paid.
IGST (integrated goods and service tax): – Its collected by the central government for inter – state sale (example: – Maharashtra to Gujrat).
What is GST Number?
Whichever person or company or institute gets its registration done under GST, it is given a REGISTRATION number and you can call it GST registration number or GST number if you want.
This GST number is made up of total 15 digits and 10 digits of the PAN card of the person or organization who has applied for the GST number are also added to it.
For example: 22AAAA0000A1Z5
First two digit :- the first digit of GSTIN is state code as per indian census
2011.the state codes are as below.
01 – Jammu and Kashmir
02 – Himachal Pradesh
03 – Punjab
04 – Chandigarh
05 – Uttarakhand
06 – Haryana
07 – Delhi
08 – Rajasthan
09 – Uttar Pradesh
10 – Bihar
11 – Sikkim
12 – Arunachal Pradesh
13 – Nagaland
14 – Manipur
15 – Mizoram
16 – Tripura
17 – Meghalaya
18 – Assam
19 – West Bengal
20 – Jharkhand
21 – Orissa
22 – Chhattisgarh
23 – Madhya Pradesh
24 – Gujarat
25 – Daman and Dui
26 – Dadra and Nagar Haveli and Daman and Dui
27 – Maharashtra
28 – Andhra Pradesh
29 – Karnataka
30 – Goa
31 – Lakshadweep
32 – Kerala
33 – Tamil Nadu
34 – Puducherry
35 – Andaman and Nicobar Islands
What is HSN code?
The full name of HSN is Harmonized System Nomenclature and it is created by WORLD CUSTOMS ORGANIZATION (WCO). Which controls the import and export of goods and services in the country and abroad. Through the HSN code, you can easily find out how much tax will be levied on which item sold in the market.
The HSN code was created so that if an item is being manufactured in one country, then the name of that item may be different in another country, and whenever this happens, whenever any goods or item is imported. If it is, then the Custom Department used to spend a lot of time in finding the Custom Rate of that goods.
HSN codes can be 4-8 digits long. About 2 thousand codes have been prepared under HSN.
