GST New Changes from 1st November 2022
India's Goods and Services Tax (GST)
The Goods and Services Tax (GST) is a tax levied by the Indian government on purchases of goods and services in the country. The tax went into effect in 2017. The tax has consolidated all other indirect taxes, such as Value Added Tax (VAT), into a single tax. The government levies GST in slabs. The current slab rates are 5%, 12%, 18%, and 28%. The Council manages GST, which is governed by the Goods and Services Tax Act of 2017.
GST is levied on all goods and services except petroleum products and electricity, which are taxed by state governments.
It is divided into two parts: State Goods and Services Tax (SGST), which is collected by state governments, and Central Goods and Services Tax (CGST), which is collected by the federal government. Both governments’ shares are equal to GST. For example, if a product is subject to
5% GST, the SGST (2.5%) and CGST (2.5%) will be the same. Another sort of tax, the
Integrated Goods and Services Tax (IGST), is levied on interstate sales of goods and services. The tax was intended to prevent tax cascading, or the collection of various taxes at each level of production. It is also done under GST, however, the manufacturer gets refunded on higher levels. It is a destination-based tax, meaning it is collected by the state where the commodity or service is consumed rather than the state where it was manufactured.
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5 MAJOR CHANGES BEGINNING ON 1st NOVEMBER 2022
- KYC required for insurance claims: Beginning November 1st, KYC will be required for insurance plans. The Insurance Regulatory and Development Authority of India (IRDAI) said in a statement that KYC verification will be required for health and general insurance from November 1, 2022. KYC verification is currently optional. “The deadline will not be extended further in this regard,” it added.
- OTP for LPG cylinder home delivery: When consumers book LPG cylinders, they will receive an OTP on their registered mobile number. Only if they provide their OTP at the time of delivery will the cylinders be delivered to their door.
- New Delhi electricity subsidy regulations: New Delhi electricity subsidy rules will go into effect tomorrow. Last month, CM Kejriwal declared that the deadline for applying for power subsidies for the month would be October 31. Those who do not apply for the subsidy will be required to pay their non-subsidized costs but can apply again next month. In Delhi, there are 58 lakh household power consumers, with 47 lacks receiving the subsidy.
- Four-digit HSN code required for GST return: Beginning November 1, taxpayers with a turnover of less than Rs 5 crore will be required to give a four-digit HSN code in their GST return.
- Train timetable: Indian Railways has announced a new timetable for some long-distance trains that will go into effect on November 1. If the allegations are to be believed, the schedules of 13,000 passenger trains and 7,000 cargo trains will be altered. Furthermore, the schedules of 30 Rajdhani trains operating across the country would alter from November 1.