Minimum things Every One should know About GST

From 1st July on wards we are going to face new kind of taxation which is know as GST.
Below are the few things need to know about this new taxing system.

1.What is GST?

Article 366(12A) of the Constitution as amended by 101st Constitutional Amendment Act, 2016 defines the Goods and Services tax (GST) as a tax on supply of goods or services or both.

GST is a destination based tax on consumption of goods and services.

In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

2.Why was the Constitution of India amended in the context of GST?

Currently, the fiscal powers between the Central and the State are clearly demarcated in the Constitution with almost no overlap between the respective domains. The Central has the powers to levy tax on the manufacture of goods. While the States have the powers to levy tax on the sale of goods. In the case of Inter-state sales, the Central has the power to levy a tax but, the tax is collected and retained entirely by the states. As for services, it is the Central alone that is empowered to levy service tax.

Introduction of the GST required amendments to the Constitution so as to simultaneously empower the Central and the States to levy and collect this tax. The Constitution of India has been amended by the Constitution Act, 2016 for this purpose. Article 246A of the Constitution empower the Central and the States to levy and collect the GST.

3. What are the benefits which the Country will accrue the GST?

Introduction of  GST would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax and allowing set-off of prior-stage taxed, it would mitigate the ill effects of cascading and pave the way for a common national market.

For the consumers, the biggest gain would be in the consumers, the biggest gain would be in terms of a reduction in the overall tax burden on goods, which is currently estimated at 25%-30%. introduction of GST would also make out products competitive in hte domestic and international markets,Studies shows that this would instantly spur economic growth.

There may also be revenue gain for the Central and the States due to widening of the tax base, increase in trade volumes and improved tax compliance. Last but not the least, this tax, because of its transparent character, would be easier to administer.

4.What would be the role of GST Council?

A GST Council would be constituted comprising the Union Finance Minister ( who will be the Chairman of the Council), the Minister of State (Revenue) and the state Finance / Taxation Ministers to make recommendations to the Union and the States on various issues.

5.How will decisions be taken by GST Council?

The Constitution (One Hundred and First Amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of mot less than 3/4th of the weighted votes of the members present and voting. The vote of the Central Government shall have a weight age of 1/3rd of the votes cast and the votes cast in that meeting. One half of the total number of members of the GST Council shall constitute the quorum at its meeting.

6. Who is liable to pay GST under the GST regime?

Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the turnover threshold person of Rs.20 lakhs (Rs.10 lakhs for NE & Special Category States) except in certain specified cases where the taxable person is liable to pay GST even though he has not crossed the threshold limit.

7. What is HSN?

HARMONIZED SYSTEM OF NOMENCLATURE (HSN) code shall be used for classifying the goods under the GST regime,

8.What is GSTN and its role in the GST regime?

GSTN stands for Goods and Service Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been set up to cater to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for implementation of GST.

How to prioritize the work Effectively to make the day better.

We all are very busy with lot work. Every one have their own problems. In this competitive world to make our mark we need to compete. Every one is doing hard work but only few are successful.

What makes them successful?

Its simple, every successful person did things which are not done by unsuccessful is doing things in organized manor.

What do you mean by "Doing things in Organized Manor"?

In a day every one will have 24 hrs to complete their daily task. But we need to be very conscious about the order of the things we are doing. 

Does order maters if we are doing right things?

Yes, if we are not going to keep track of order we will land up in a situation like we have spent all our time in doing low priority task leaving no time to finish high priority task.

How to handle this situation? How to prioritize the task?

I have a simple formula of prioritizing the daily tasks.

Important & Urgent Matrix.

As we see in image, draw the quadrant and make it 4 parts.

On either of one axis write Important and Not Important against each quadrant. On other axis write Urgent and Not Urgent against each quadrant.

Step 1: list out all the task you can remember you are going to work on today.

Step 2: Based on your priority decide your self which task is urgent and which is important.

Let me give you  one example.

Every day reading news paper is important to gain knowledge. But getting ready to office/school is urgent because it will impact our timing. 

I believe this example will help you to identify which is important and which is urgent.

After filling the matrix we need to do below things.

List of task falling under Urgent and Important quadrant : Do them right now.

List of task falling under urgent and not important : Give specific time period to them in line after completing quadrant 1 tasks.

List of task falling under Not urgent and Important : Right after quadrant 1 and quadrant 3 start working on these tasks because these are important.

Now last which is not important and not urgent: can be ignored.

This way we can plan our  daily task effectively.