Introduction to GST Bill India
Simply put, GST or Goods & Services Tax is an ideal amalgamation of a number of taxes imposed by the Centre and the State. With the implementation of GST in India, the indirect taxes in India would give way for a refined tax policy and ultimately, a single national market. GST bill, rightly being perceived as a revolutionary step, would reap significant gains for the Indian economy in the long run.
At present, the overall tax on goods is estimated to be around 25%-30% and with the implementation of GST is expected to come down. For consumers, it would pave the way for a reduction in the overall tax burden on the goods.
Also, one can expect a boost in the demand for Indian goods in the local market as well as in the international markets. GST Bill, also being referred to as One Nation One Tax Policy, is transparent & Self-policing which makes it easy for the people to administer and not get entangled in the network of tax policies it will rightly replace.
Different Components of the GST Act
At present, there are more than 10 tax policies levied by the State and Centre on the goods. GST Act makes all the indirect taxes redundant and replaces all of them with only three prominent GST components, namely:
- Central Goods & Services Tax.
- State Goods & Services Tax
- Integrated Goods & Services Tax.
The Central and the State government will levy CGST and SGST respectively on the intra-state movement and supply of goods. IGST, on the other hand, will be levied upon the inter-state movement and supply of goods and will be collected by the Central government.
Here are two scenarios to understand CGST, SGST, and IGST:
Scenario 1: If a dealer in Haryana sells goods worth of Rs, 10,000 to a consumer within the state. The GST rate is 18% which comprises of two components i.e. 9% of CGST and 9% of SGST. So, for goods worth Rs, 10,000 a dealer will collect Rs 1,800 out of which Rs. 900 will go to State government and the other half to the Central government.
Scenario 2: Now, if a dealer is looking to sell goods to a consumer of another state. Say, a dealer in Haryana sells goods worth Rs, 1,00,000 to a dealer in Rajasthan the GST rate is 18% i.e. Rs 18,000 which is the IGST and is levied by the Central government.
Impact of GST Bill on B2B e-commerce market
For a B2B e-commerce portal, there is no threshold limit to be registered for the GST. Irrespective of how small or established an e-commerce portal is or how much of revenue is generated by the e-commerce portal they have to get registered under GST.
For Sellers, in the post-GST era, a plethora of opportunities wait to be cashed in on. With the implementation of GST India, a significant focus is going to be on platform-based selling in that will ultimately contribute to the indirect cost savings as generated by fewer file returns and fewer state registrations.
Avail Fully GST compliant services on Industrybuying
The business associates of Industrybuying would be delighted to know that the company is registered in all the States. For the ones yet to be a part of the leading B2B e-commerce website here is your chance to avail fully GST compliant services with Industrybuying.
The company boasts of a PAN India reach and guarantees access to over 2 Million Business Customers per Month. Industrybuying offers vendors a choice of GST Bill compliant models i.e. Inventory based and Marketplace.
With sorted tax policy and ease of doing business GST Act will promote healthy competition online and the streamlined One Nation, One Tax Policy will only fuel the online investments in the years to come.