GST has fried the mind of lots of people in a verge of understanding the whole GST return filing process. Even the experts are not able to understand the process completely and get confused. To be very true, the GST is becoming a puzzle, especially for the common people. Having a complex design, GST makers think that the entire businessmen are experienced one to fill out multiple GST forms. On comparing with our country, the America is taking a step ahead by concluding out various ways to increase the sale using new technologies. Some people think that because of some loopholes, the GST is becoming unpopular.
Yeah, it is an unfortunate thing as the intelligently designed GST has the capability or can say the power of changing the Indian economy. The only hope is that the GST council is continuously revising the process. There are many items that come under in the 28% category or 18% category. GST rates are generally reduced a lot and bring lots of advantages to the manufacturer. The pleasure generally equals to the taxes and brings luxury. If we think about the GST returns, then they are too complex as we all think.
The government has brought this determined plan to keep a track of the transaction of every business to find how much capital is transacting every year. This dream of the India government made the situations complicated for the entrepreneurs who never gone through this kind of thing before.
The tale of seven tax rates
According to the Indian GST, there are multiple of rates, precisely around seven in which 5, 12, 18, 28 are the main one and remaining three comprises of:
- 28+cess used for cars, tobacco, aerated drinks and others.
- 3 required for precious metals and Gold.
- Nil is meant for food grains.
Taking an example, in B2B (Business to Business) process, it doesn’t matter that supplier would pay all the taxes and the buyers would get the credit. But, if someone goes to buy some auto accessories, then the rate difference would really matter.
Let’s make the GST to understand better
According to the GST there are mainly three types of supply.
- Combined supplies
These types of supplies bring bigger problems along with them. Like for example we you buy a pack of sweet and have candies along with chocolates that definitely attracts different GST rates.
- Mixed supplies
This means that different individual supplies of goods or services are made in one pack for a single price.
- Composite supplies
As the name suggests, these basically comprise of two or more taxable supplies of either goods or services or both that are automatically supplied in conjunction in the ordinary course of business.
The Indian Philosophy makes us learn several things and one of its teachings is that even if truth is the same, different people see it differently. The same thing applies to the GST also. It is just different perspectives that make the GST good or bad.