BANKING AFFAIRS

Detailed explanation-1: -GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.

Detailed explanation-2: -Under the GST, supply of goods and/or services can be classified into two major categories-Taxable supplies and Non-taxable supplies. These are further classified into different types based on the nature of supply made. Taxable Supplies-These refer to supply of goods and/or services that are taxable under GST.

Detailed explanation-3: -Currently, the types of GST in India are CGST, SGST, and IGST. This simple division helps distinguish between inter-state and intra-state supplies and mitigates indirect taxes. To learn more, read about these three different types of GST.

Detailed explanation-4: -GST Payment on Free Supplies Whenever the goods are supplied free of cost, as such no compliances are involved and thus, the supply would not consider a taxable supply, as per section 7 of the CGST Act.

Detailed explanation-5: -GST is a destination based tax and levied at a single point at the time of consumption of goods or services by the ultimate consumer. GST will be levied on all goods and services except on goods outside the of GST, exempted goods & services and transactions below threshold limit.