5 Questions
What is the nature of GST in terms of its imposition?
It is multi-staged and meant to be refunded to all parties in the production process
What is the main difference between GST and VAT?
GST is a digitalized form of VAT with the ability to track goods and services
What are the tax slabs under GST for goods and services?
0%, 5%, 12%, 18%, and 28%
What items are not taxed under GST?
Petroleum products, alcoholic drinks, and electricity
What happens to the taxation of petroleum products, alcoholic drinks, and electricity under GST?
They are not taxed under GST and are taxed separately by the individual state governments
Study Notes
GST Imposition
- GST (Goods and Services Tax) is a multi-stage, destination-based tax levied on the supply of goods and services.
- GST is imposed at every stage of the supply chain, with a mechanism of input tax credit (ITC) to avoid cascading of taxes.
GST vs VAT
- The main difference between GST and VAT (Value-Added Tax) is that GST is a comprehensive, multi-stage tax, whereas VAT is a single-stage tax.
- GST is a more comprehensive tax, covering a broader range of goods and services.
GST Tax Slabs
- GST has a four-tier tax structure for goods and services: 5%, 12%, 18%, and 28%.
- Certain essential goods, such as food grains, are exempt from GST.
Exempt Items
- Certain goods and services are exempt from GST, including:
- Agricultural produce
- Milk, curd, and lassi
- Fresh fruits and vegetables
- Bread, prasad, and puja samagri
- Unprocessed food items like coffee beans, tea leaves, and spices
Taxation of Specific Goods
- Petroleum products, such as petrol, diesel, and jet fuel, are outside the GST regime and continue to be taxed under existing laws.
- Alcoholic drinks and electricity are also outside the GST regime, and their taxation remains unchanged.
- States have the flexibility to levy taxes on these goods, as per their discretion.
Test your knowledge of the Goods and Services Tax (GST) with this quiz. Explore the differences between GST and VAT, understand the taxation slabs, and grasp the comprehensive, multistage, destination-based nature of GST. Enhance your understanding of this important aspect of taxation in India.
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