Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. The tax will be levied at every point of sale. In case of intra-state sales, Central GST and State GST will be charged. Inter-state sales will be chargeable to Integrated GST.
GST will mainly remove the Cascading effect on the sale of goods and services. Removal of cascading effect will directly impact the cost of goods. Since tax on tax is eliminated in this regime, the cost of goods decreases. GST is also technologically driven. All activities like registration, return filing, application for refund and response to notice needs to be done online on the GST Portal.
Its the responsibility of the organization to ensure error free filing of GST Returns for all registrations of the organizations across PAN India with in the specified timeline as defined in the GST Act. To achieve this the objective, the key is to determine the Final Tax Liability for the tax period & for the tax return the with optimum utilization of Input Tax Credit and there by enable the organization in complying with GST provisions.