Information

"Learning is an active process. We learn by doing… Only knowledge that is used sticks in your mind."

– Dale Carnegie

GENERAL INFORMATION

Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and is applicable throughout India which replaced multiple cascading taxes levied by the central and state governments.

The single GST(goods and service taxes) replaced several former taxes and levies which included: central excise duty, services tax, additional customs duty, surcharges, state-level value added tax and Octroi.

GST is levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services. India adopted a dual GST model, meaning that taxation is administered by both the Central and State Governments. There are 4 applicable taxes under GST – IGST, CGST, SGST & UTGST

HSN or “Harmonized System of Nomenclature,” code used to systematically name and classify goods for taxation and trade. It was developed by the World Customs Organization (WCO) and serves as the global standard for categorizing over 5,000 products, playing a vital role in international trade and tax regulation.

SAC and HSN codes are two systems of classification used for goods and services under the GST regime in India or the GST State Code List. They both identify the nature and value of the taxable items and services and ensure uniformity across the country. HSN codes must be declared on GST invoices.

eWay Bill or an Electronic Way bill is required for movement of goods under GST. Transporters should carry an eWay Bill when moving goods from one place to another, valid across India if value of consignment exceeds a specified limit.

e-Invoicing under GST denotes electronic invoicing defined by the GST law applicable to certain notified GST-registered businesses which must generate an e invoice for Business-to-Business (B2B) transactions. The e-Invoice System is for a GST registered person to upload all the B2B invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user.

MISCELLANEA

History of Taxation

The origin of the word “Tax” is from “Taxation” which means an estimate. The levying of taxes dates back to 2000 years across many empires – Greece, German and Roman empires. For many centuries, revenue from taxes went to the Monarch.

As with most problems, taxation problems date back to earliest recorded history.

In India, the system of direct taxation has been in force in one form or another even from ancient times. There are references both in Manu Smriti and Arthashastra to a variety of tax measures. Manu, the ancient sage and law-giver stated that the king could levy taxes, according to Shastras.  He advised that taxes should be related to the income and expenditure of the subject. The detailed analysis given by Manu on the subject clearly shows the existence of a well-planned taxation system, even in ancient times. Not only this, taxes were also levied on various classes of people like actors, dancers, singers and even dancing girls. Taxes were paid in the shape of gold-coins, cattle, grains, raw-materials and also by rendering personal service.

Kautilya’s Arthasastra, deals with the system of taxation in an elaborate and planned manner, written sometime in 300 B.C.  A major portion of Arthasastra is devoted by Kautilya to financial matters including financial administration. According to famous statesman, the State not only collected a part of the agricultural produce which was normally one sixth but also levied water rates, octroi duties, tolls and customs duties. Taxes were also collected on forest produce as well as from mining of metals etc. Salt tax was an important source of revenue and it was collected at the place of its extraction. Kautilya described in detail, the trade and commerce carried on with foreign countries and the active interest of the Mauryan Empire to promote such trade.

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