GST services in Bhopal – Financial Tax Help
The term GST is enough these days to steal away sleep of every Indian. Since the day Goods and Services Tax(GST) was introduced by the Indian Government on 1 July 2017 and were applicable throughout India, it has only got more confusing for not just professionals but common man and small business owners. There seem to be many people offering GST services in Bhopal and other cities throughout our beloved country.
The truth is that there are very few financial professionals out there who seem to have decoded the head-scratching GST. So, if you are looking for GST Services in Bhopal, look no further. Financialtaxhelp.com has all the financial services you need in one place. Here, you can get GST Services, Taxation Services, Advisory Services, Mutual Funds, etc. Financial Tax Help is just a call away!
What is Goods and Services Tax(GST)? | GST Services in Bhopal at FinancialTaxHelp.com
Goods and Services Tax(GST) is an indirect tax levied on the supply of goods and services. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The GST Act came into effect on 1st July 2017.
So, Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that has replaced many indirect taxes in India.
One may say that GST is levied on every value addition during the journey of every good or service. What does value addition mean?
Value Addition | GST Services in Bhopal
Let’s try to understand Value Addition in the realm of GST by an example.
We have, say, a biscuit manufacturer who makes delicious biscuits(Who doesn’t love biscuits?!). Now that manufacturer needs raw material such as flour, sugar, etc to make these biscuits. The value of the inputs increases when the raw materials(here sugar and flour) are mixed and baked into biscuits.
The manufacturer of biscuits then sells it to a warehousing agent. The warehousing agent packs large quantities of biscuits and puts a fancy label on it. That means, there is an addition of value.
That is another addition of value after which the warehouse sells it to the retailer.
The retailer packages the biscuits in smaller quantities and invests in the marketing of the biscuits thus increasing its value.
GST will be levied on these value additions i.e. the monetary worth added at each stage to achieve the final sale to the end customer. The game is not over yet!
Destination-Based | Financial Tax Help
A question arises! How is GST destination-Based?
Umm…So, these delicious biscuits were produced and packed in Bhopal (Madhya Pradesh). The biscuits were then sold in Mumbai(Maharashtra).
Consider goods manufactured in Madhya Pradesh and are sold to the final consumer in Maharashtra. Since Goods & Service Tax (GST) is levied at the point of consumption, in this case, Maharashtra, the entire tax revenue will go to Maharashtra and not Madhya Pradesh. Fair enough?!
Hold your horses’ friends, GST can be very complicated. If you are looking for GST Services in Bhopal, financialtaxhelp is your destination.
Multi-Stage | Understanding GST
To understand why GST is multi-stage, let’s take a look at the general flow of supply chain: from manufacture to the final sale to the consumer.
- Purchase of raw materials
- Production or manufacture
- Warehousing of finished goods
- Sale to wholesaler
- Sale of the product to the retailer
- Sale to the end consumer
GST will be levied on each of these stages, which makes it a multi-stage tax. You must be thinking, that’s it? No! GST can get very confusing on a bigger scale. If you are looking for GST Services in Bhopal, FinancialTaxHelp is there for you!
Types of GST in India | GST Services in Bhopal
There are 3 taxes applicable under GST: CGST, SGST & IGST.
- CGST: Collected by the Central Government on an intra-state sale (Eg: Within Madhya Pradesh)
- SGST/UTGST: Collected by the State Government on an intra-state sale (Eg: Within Madhya Pradesh)
- IGST: Collected by the Central Government for inter-state sale (Eg: Maharashtra to Madhya Pradesh)
NOTE: SGST would be leviable along with CGST on the supply made by a registered person within a State.
Just as SGST is leviable along with CGST on the supply made by a registered person within a State, SGST would be levied along with CGST on the supply made by a registered person within a Union Territory.
However, in no case, both SGST would be leviable on an invoice of supply of goods or services or both. It would either be SGST or UTGST along with CGST would be leviable on the invoice.
IGST would be leviable on Import or Inter-State supply of goods or services or both. IGST would be equivalent to sum total of CGST and SGST/UTGST.
Confused? Don’t worry financial tax help is more than happy to help! Contact us if you’re looking for GST Services in Bhopal.
Let’s see how GST is hurting your pocket every day!
What will become costlier and cheaper? | GST Services in Bhopal
According to experts, these items could become costlier:
- Cigarette prices likely to go up as GST rate for tobacco will be higher than current duties
- Commercial vehicles such as trucks will become costlier
- Mobile phone calls may get costlier as service tax will go up
- Textile and branded jewelry may become costlier
And these could become cheaper:
- Auto: Prices of entry-level cars, two-wheelers, SUVs may fall
- Car batteries likely to get cheaper
- Paint, cement prices likely to fall
- Movie ticket prices likely to fall as entertainment tax will come down
- Electronics items like fans, lighting, water heaters, air coolers, etc. will get cheaper
India is notorious for its complex tax system. For new businesses and startups, it becomes impossible to navigate through various direct and indirect taxes. Constant changes to taxes like Service Tax are making things even worst. But now, the things are set to change with new Goods and service tax – commonly known as GST.
GST SERVICES IN BHOPAL | FinancialTaxHelp
If you are looking for GST Services in Bhopal, Come to FinancialTaxHelp – Our mission- “Money Matters”. Financialtaxhelp.com provides financial planning, registration, and taxation services to increase individual wealth, vastly improve the ability of those who seek to achieve financial stability and self-sufficiency and build stronger communities Earn It. Keep It. Save It. We also provide financial planning and saving programs and resources to help you save what you earn!
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