**GST Notes for B.Com 2nd Year**

**Introduction to GST:**

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It is a comprehensive tax system that replaced multiple indirect taxes like VAT, service tax, excise duty, etc. GST was introduced to simplify the tax structure, eliminate cascading effect, and promote ease of doing business.

**Key Features of GST:**

1. **One Nation One Tax:** GST aims to create a common national market by replacing multiple state and central taxes with a single tax system.

2. **Dual GST Structure:** GST is divided into two components - Central GST (CGST) and State GST (SGST). CGST is levied by the central government, and SGST is levied by the state government.

3. **Destination-Based Tax:** GST is a consumption-based tax, which means it is levied at the point of consumption. The tax revenue is collected by the state where the goods or services are consumed.

4. **Input Tax Credit:** GST allows businesses to claim input tax credit on their purchases, which can be set off against their GST liability. This helps in reducing the cascading effect of taxes and promotes efficiency.

5. **Threshold Exemption:** Small businesses with an annual turnover below a specified threshold are exempted from registering under GST. This threshold varies for different categories of businesses.

**GST Tax Structure:**

1. **Taxable Events:** GST is applicable on the supply of goods or services, including barter, exchange, rental, lease, or importation of services.

2. **Tax Rates:** GST is levied under different tax slabs - 5%, 12%, 18%, and 28%. Additionally, certain goods and services are exempted or taxed at a nil rate.

3. **Composition Scheme:** Small businesses with a turnover up to a specified limit can opt for the composition scheme. Under this scheme, they pay a fixed percentage of their turnover as tax without availing input tax credit.

**GST Registration and Returns:**

1. **GST Registration:** Businesses with an annual turnover above the threshold limit must register under GST. They need to obtain a unique Goods and Services Tax Identification Number (GSTIN).

2. **GST Returns:** Registered businesses need to file regular GST returns, which include details of their sales, purchases, and tax paid. The frequency of return filing varies based on the turnover and type of business.

3. **Input Tax Credit:** Businesses can claim input tax credit by matching the details of their purchases with the details uploaded by their suppliers in their GST returns.

**Conclusion:**

GST is a game-changer in the Indian tax system, aiming to simplify taxation, promote transparency, and boost economic growth. Understanding the key concepts and provisions of GST is crucial for B.Com students to have a strong foundation in taxation and commerce.