P1 C3 Introduction To Goods and Service Tax — Account STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceAccountP1 C3 Introduction To Goods and Service Tax3 Marks
Question
Explain any two special features of $GST.$
✓
Answer
Meaning: Different taxes of central government and state governments are withdrawn and goods and services are covered under one tax. This tax is known as goods and services tax
$($GST$)$. Tax which is applicable on supply of goods and services is known as goods and services tax. It's acronym form is $GST$. The special features of $GST$ are as follows.
$(1)$ One tax: Goods and services are covered under one tax only.
$(2)$ Tax collection on supply: Tax is collected on supply of goods and completion of services instead of tax collection on production or sales of goods or providing of services.
$(3)$ $GST$ council: Entire operations and regulations of $GST$ are done through $GST$ council. Each state has representation in $GST$ council. The finance minister of centre works as chairman of this council.
(Goods and Services Tax council)
$ (4)$ $GST$ rates: All $GST$ rates are recommended by the $GST$ council.
$(5)$ Import and $GST$: Imports of goods and services are treated as inter-state supply.
$(6)$ Input Tax Credit: $GST$ paid on purchase is allowable deduction from sale of goods and sale of goods and services.
$(7)$ Tax distribution: An appropriate tax distribution system for central and state government is made available in this tax.
$(8)$ Tax determination: All tax rates on goods and supply are determined on the basis of heads of goods and services.
$(9)$ Predetermined tax rate structure: For applicable tax rates predetermined tax structure is made available.
$(10)$ Five $GST$ Acts: In the context of $GST$ five acts are passed.
$(11)$ Uniformity: $GST$ laws, rules, procedure and tax of taxes are similar, across the country Note: For goods and services tax the word $GST$ is used.
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