What is GST, its return and registration

What is GST

Meaning of GST: GST is the combination of three words, goods,service and tax so now first we need to understand these three words 

what is the definition goods service and tax under GST law:

                                         Section 2(52)-Goods 

Means: Every kind of movable property 

other than: money and securities 

but includes: actionable claim, growing crop, grass and things attached to or farming part of land which are agreed to be served before supply or under a contact of supply

                                        Section 2(102)-Services

Means: Anything

Other than: Goods, money and Securities

But includes: Activities relating to the use of money and its conversion by cash or by any other mode, from one form, currency, to another form ,currency for which a separate consideration charged

Note: for the removal of doubts, it is hereby clarified that "service" include facilitating or arranging transaction in securities.

                                                       Section 2 -tax

Means:  A compulsory extortion of money under an act to support the nation . In other worlds tax is a mandatory financial charge imposed upon a taxpayer by the Government under a law ,in order to fund various public expenditure.

                                                How GST works:

For levy GST there is five conditions which must be met. after this govt levy GST on goods and services. which divided equally into two parts CGST and SGST/UTGST , CGST part taken by central Government and other is taken by state Government.

                                         All five conditions that must be met 

Condition(1): Good or service whichever is sold that qualify the definition of goods and service under GST law which is given above

Condition(2): It must be a "SUPPLY OF GOODS / SERVICE"

Meaning of supply: All form of supply of Goods / SERVICE such as: -"Exchange - Transfer * Transfer/disposal of Business Assets [if ITC availed already] - Barter - PERMANENT T/F - License , - Lease - Disposal Made or to be made IN THE COURSE or furtherance of Business."

Condition(3): Supply must be "INTRA or INTER" state supply.

Condition(4): Supply must be by a "TAXABLE PERSON" which we will discuss after some time

Condition(5): Good or service whichever is sold that must not be EXEMPT 

Advantages of GST

GST has removed cascading effect and use of GST has made our business operation easy. after GST there is only one taxable event instead of many.

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"it is only overview of GST we will upload next part of this soon"

* i hope by now you have learned a lot about GST *

      by: yash vishnoi (ca-inter)