Podcast
Questions and Answers
What is the main difference between VAT and GST?
What is the main difference between VAT and GST?
- GST is a digitalized form of VAT with the ability to track goods and services (correct)
- GST is imposed only on goods, while VAT is imposed only on services
- VAT is a destination-based tax, while GST is a production-based tax
- VAT has higher tax slabs compared to GST
What is the tax slab for rough precious and semi-precious stones under GST?
What is the tax slab for rough precious and semi-precious stones under GST?
- 3%
- 0% (correct)
- 12%
- 5%
Which items are not taxed under GST?
Which items are not taxed under GST?
- Rough precious stones, semi-precious stones, and gold
- Petroleum products, alcoholic drinks, and electricity (correct)
- Gold, aerated drinks, and luxury cars
- Luxury cars, tobacco products, and aerated drinks
Why is GST considered a destination-based tax?
Why is GST considered a destination-based tax?
What is the general tax range for most goods post-GST implementation?
What is the general tax range for most goods post-GST implementation?
What is the main difference between VAT and GST in India?
What is the main difference between VAT and GST in India?
What is the tax slab for rough precious and semi-precious stones under GST?
What is the tax slab for rough precious and semi-precious stones under GST?
Why are petroleum products, alcoholic drinks, and electricity not taxed under GST in India?
Why are petroleum products, alcoholic drinks, and electricity not taxed under GST in India?
What is the general tax range for most goods post-GST implementation in India?
What is the general tax range for most goods post-GST implementation in India?
What rate of cess applies on several items like aerated drinks, luxury cars, and tobacco products under GST in India?
What rate of cess applies on several items like aerated drinks, luxury cars, and tobacco products under GST in India?
Study Notes
Key Differences Between VAT and GST
- VAT (Value Added Tax) is a state-level tax while GST (Goods and Services Tax) is a comprehensive national tax.
- GST incorporates multiple indirect taxes into a single tax structure allowing for easier compliance.
Tax Slab for Rough Precious and Semi-Precious Stones
- Rough precious and semi-precious stones are taxed at a rate of 0% under GST, promoting the gem industry.
Items Not Taxed Under GST
- Certain essential items, including healthcare and educational services, remain exempt from GST to support affordability.
GST as a Destination-Based Tax
- GST is applied based on the location of consumption, meaning the tax revenue goes to the state where the goods are consumed rather than produced.
General Tax Range for Goods Post-GST Implementation
- Post-GST, most goods fall under a tax range of 5% to 28%, streamlining the previous multiple tax rates.
Main Differences Between VAT and GST in India
- GST replaces various state and central taxes, providing a unified framework, reducing the cascading effect of taxes experienced under VAT.
Non-Taxed Petroleum Products, Alcoholic Drinks, and Electricity
- These items are subjected to state taxes and not included in GST, allowing states to retain control over significant revenue sources.
Cess Rates on Specific Items under GST in India
- A higher cess rate applies to luxury items and sin goods, such as aerated drinks (around 12% to 15%), luxury cars, and tobacco products, to discourage consumption.
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Description
Test your knowledge about the Goods and Services Tax (GST) in India and its comparison to the Value Added Tax (VAT). Learn about the digitalized nature of GST, its taxation slabs, and its comprehensive, multistage, destination-based tax structure.
