Myths and Facts on GST | Indiastartupbiz

Myths and Facts on GST

 

Myth 01 : GST has replaced Value Added Tax (VAT).

Fact 01 : Value added tax is still applicable on some product after GST. For example, on alcohol, restaurants are levying Value Added Tax not GST.

Myth 02 : There are two types of GST - CGST and SGST.

Fact 02  : There are four types of GST:

1. CGST : Central Goods and Services Tax.

2. SGST : State Goods and Services Tax.

3. IGST : Integrated Goods and Services Tax.

4. UTGST : Union territory Goods and Services Tax.

Myth 03 : Excise duty has been replaced by GST.

Fact 03 : Excise duty is still applicable on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), and natural gas, aviation turbine fuel and tobacco products.

Myth 04 : Delhi and Puducherry are Union Territories. Therefore, Union territory Goods and Services Tax (UTGST) is applicable on them.

Fact 04 : Delhi and Puducherry have their own legislative assemblies and also have been considered as the “states” for the GST purpose, so, State Goods and Services Tax (SGST) is applicable to them.

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