Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Things About GST You Should Know

Loan for Business

Things About GST You Should Know

Things About GST You Should Know

From 1st July 2017, almost all of India’s indirect taxes will be subsumed under a single common tax; the Goods and Services Tax (GST). It will be a consumption-based tax levied on the manufacture, sale, and consumption of goods and services across the country.

Know More

Following are the seven things you should know about GST:

1. Three major taxes

For a simpler overview of the taxes, GST is categorized into three major taxes. These include the Central GST (CGST), State GST (GST), and Integrated GST (IGST). The primary objective is to bring transparency to the suppliers and consumers, as well as the taxpayers and government.

2. Easier borrowing for businesses

Like technology start-ups aiming to capitalize on GST, financial start-ups will also witness huge gains. The country’s customer and small and medium enterprise (SME) commercial loan market is expected to reach $3 trillion in the next decade. This growth is primarily attributed towards the government’s focus on digital inclusion. A large number of small businesses record transactions in books. However, GST will modify this and all taxation procedures will be online. After an effective transition towards the GST regime will make it easier for lenders to assess the creditworthiness of small businesses. This will enable financial institutions to provide timely and economical business loans to help companies grow their ventures.

3. Eliminate cascading tax effects

Under the current tax regime, India levies a tax on taxes resulting in a cascading effect and increasing the burden on the end-users. GST will eliminate such an effect by combining different indirect taxes under a single rate. This will be beneficial in reducing the final prices paid by consumers reducing their burden.

4. Taxes replaced by GST

GST will subsume approximately 14 types of indirect taxes. These include:

  • Gambling and lotteries taxes
  • Central excise duty
  • Purchase tax
  • Additional duties of excise
  • Advertisement tax
  • Additional customs duty
  • Entertainment tax
  • Special additional customs duty
  • Entry tax
  • State value added tax (VAT)
  • Luxury tax
  • Central sales tax (CST)
  • Duties of excise
  • Central and state cesses and surcharges on goods and services

5. GST rates

The GST will decide the rates to be levied. The GST rates will vary from 0% to 28% based on the product categories. The four-tier slabs include 5%, 12%, 18%, and 28%. Essential items will levy a lower rate while luxury products and services will be under the highest slab.

6. Inclusions and exclusions from GST

Daily requirements like fish, cereals, fruits and vegetables, pulses, fresh meat, and dairy products are exempt from GST. Skill and education development services are also exempt. In addition, electricity, alcoholic drinks, and petroleum products including petrol, crude oil, aviation turbine fuel, natural gas, and diesel are outside the GST purview. However, these will attract VAT and central excise duties. The GST rollout marks a new dawn in Indian history. It is a huge step towards the country’s goal of establishing business transparency.

Apply Now

Give Your Business the Right Boost: Apply for a Business Loan Today

Apply now
Popular Searches
business idea udyogini scheme hsn code full form low investment business ideas top 10 most successful businesses to start transport business import export business in india mineral water plant cost collateral free loans
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.