WHAT IS TAXED UNDER GST

GST is a unified tax which is levied on: (i) goods; (ii) services and (iii) a mix of goods and/or services.

Any supply of goods or services or both, in course of business is liable to be taxed under CGST or SGST or IGST as per nature of supply.

What is Goods?

·         Every kind of movable property

·         Includes: (i) actionable claims; (ii) growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply.

·         Excludes:(i) money; (ii) securities

What is services?

·         Services mean anything other than goods.

·         Services include: transactions in money but not money and securities.

·         Services exclude: transaction in money other than specified activity relating to the use of money.

BASIS OF CLASSIFICATION OF GOODS AND SERVICES

Under GST, goods and services shall be classified as per HSN Code. The classification shall eliminate the disputes relating to classification and also the tax due thereon.

·         Under GST in India description of goods sold will neither be added on invoice nor to be uploaded in the returns. Only HSN code in respect of supply of goods and Accounting code in respect of supply of services will have to be fed. The minimum number of digits that the person shall upload would depend on his turnover in the year. Broad rule about use of HS to be mentioned in invoice for goods under GST is as under:

Services will be classified per the Services Accounting Code (SAC). CGST Act, 2016 has not formulated any Service Accounting Codes (SAC). Therefore the SAC used in Service Tax, reproduced below are likely to be used.