Good Morning, Good Evening, Good Afternoon to all who are
watching this video.
How are you all?
Are you able to understand the concepts?
What was the system before?
What was the objective of bringing GST?
Tax on Taxes were being imposed.
The price of things were skyrocketing.
After bringing GST, the GST that you were depositing at the
time of purchase, you can take credit for it.
Taking credit means minusing the tax that you will collect
from the customer at the time of sale.
The tax that you have to deposit.
If you have to collect tax from the customer and deposit it
to the government, how will you deposit it?
Collect tax from the customer.
The tax that I have paid at the time of purchase, I will
minus it.
And the difference that I have, the value added tax, the
value added tax, I will collect it from my pocket and
deposit it to the government.
This is what we read in the last few lectures.
Then we also saw that there were some products that were
kept out of GST.
Like Petroleum, Alcohol, High Speed Diesel, Motor Spirits,
Aviation Fuel, the petrol that is required to run an
aircraft, that has also been kept out.
Normal petrol has also been kept out of GST.
They still have to pay the sale tax.
They still have to pay the excise duty provisions.
Alcohol has always been kept out of GST.
Because they have a lot of tax collection.
If we bring it to GST, then a lot of tax collection, a lot
of taxes will be left.
Because GST means One Nation One Tax.
Credit will keep getting collected.
The government is saying that these are such things that
the more you can extract from them, the more you can loot
from them, the more you loot.
Alcohol etc. are such things.
We read this in the last lecture.
Before leaving, I explained a concept to you that you are
giving GST to the government, but how will the government
distribute it?
How much will go to the central government?
And how much will go to the state governments?
And how will it go?
It is a simple thing.
Whatever GST rate is written, there are two bifurcations.
What is the first bifurcation?
SGST and CGST.
These two always go together.
They always go together.
And their third brother who lives abroad, his name is IGST.
Now what is CGST and SGST?
It is a simple thing.
The government has made different acts for GST.
But in different acts, you don't need to read them
separately.
Because the content inside is the same for everyone.
The provisions inside are the same for everyone.
The only difference is the section number.
Everything inside is the same.
One, the central government has made an act for GST.
The government of 28 states has made 28 state government
GST acts.
Then there are 8 UTGSTs for the Union Territories.
But everything is the same.
And there is an act for IGST.
Who manages IGST?
The central government manages everything.
So it is a simple thing.
When does it go?
Now the kids will be confused.
Sir, you are saying CGST and SGST.
You are saying that any GST, like there is, it is divided
into CGST.
Any GST is divided into CGST
and SGST.
It is divided on an equal basis.
Because if it is written in any act that 2% CGST is to be
collected, then the same provision will be there in SGST.
Take 2% CGST.
And what do you take 2% of? 2% CGST and 2% SGST.
The rates are same to same.
Same to same.
Sir, this is very clear.
But what is IGST?
Number 1.
Number 2.
How do we know that
CGST is to be applied on this transaction or IGST is to be
applied on this transaction?
I will do normal sales.
I know that I am selling for Rs. 2000.
For example, this is a mobile.
I am selling it in the market for Rs. 2000.
Now how do I know whether I am collecting CGST on it or
SGST or IGST?
How do I know this?
Is there any rule for this?
Is there any thumb rule for this?
Sir, thumb rule is this.
Government knew that these problems will come.
It is a simple thing.
Government said that thumb rule is this.
If your location of supplier
LOS Location of supplier.
Location of supplier means the person who is selling you
goods and providing you services.
This is about services tax.
Goods and services can also come.
The person who is selling you goods or providing you
services and place of supply
Location of supplier and place of supply
If they are in the same state in the same Union Territory
In that case, what do we consider?
Intrastate supply.
Intrastate means that when they supply in the same state
Intrastate supply then the rule says that
CGST and SGST will be applied.
It is a simple point.
What did I say? Say it again.
Sir, let's understand this as an example.
For example, I live in Punjab.
Okay? I live in Punjab.
Location of supplier
For example,
I sell cloth.
My raw material is cloth.
I sell cotton cloth.
I live in Punjab.
I live in Patiala.
I am selling in Ludhiana.
Okay? I am in Punjab.
I am the supplier.
Where is my customer from?
My customer is from Punjab.
What is the location of supplier?
Punjab.
And what is the place of supply?
Punjab.
In this case, sales are being done in the same state.
Two states are not involved here.
The supplier is in Punjab and the customer is in Punjab.
They are working in the same state.
This is intrastate supply.
What is this?
Intrastate supply.
This is intrastate supply.
Whenever you sell goods, your bill will be
Rs.1000.
You show CGST separately.
And show SGST separately.
And tell the total amount to the customer.
For example, in the beginning, there was a manufacturer who
was selling goods for Rs.1000 and was collecting GST
according to 10%.
If I bring that example here, in this case, 5% CGST and 5%
SGST.
So, Rs.50 for CGST and Rs.50 for SGST.
A total of Rs.1100.
Did you understand what I am trying to say?
What are we studying, sir?
What are we studying?
We are studying about GST.
We are discussing GST.
We are trying to understand these things.
I am trying to explain the bifurcation.
You have already said that GST will be applied.
Now, out of that GST, how much goes to the central
government and how much tax goes to the state government.
We are discussing about that.
Is the point clear?
Now, if we take this discussion forward, we have to know
that the government has made a rule and that rule says
that if your location of the supplier, means the supplier
is in one state and the place of the supplier where you
have to supply goods or services is also in one state then
in that case
CGST and SGST both are applicable.
In that case, IGST is not required.
In that case, whatever you are supplying, whatever goods
you are supplying, whatever services you are supplying, the
selling price of that you have to add CGST and also add
SGST.
Equal percent.
18% the government has said that 18% GST has to be added.
The government has not mentioned what has to be added.
18% GST has to be added.
Now, you have to check where your supplier is located and
where the supply is coming.
If it is in one state,
CGST and SGST will be added.
Then you have to think that both are added on equal basis.
CGST and 9%
SGST.
It is a simple thing.
Add both 9% and 9%.
Do the opposite.
Assume that the location of the supplier and the supply is
in different states.
Assume that
I am selling clothes from Punjab.
I am selling clothes from Ludhiana, Patiala for example,
and I am selling it in Goa.
I am a seller. I am selling clothes from Patiala and my
buyer is in Goa.
Now, understand the problem. I am in Punjab and my buyer is
in Goa.
In that case, which government will get the tax?
This could have been a big problem.
Should the Punjab government get the tax?
Or should the Goa government get the tax?
Who should get the tax?
This was a big problem.
The point is right.
If I am in Punjab and my buyer is in Goa,
I have supplied the goods.
The supply has come from Goa.
Where am I?
What is my place of supply? Goa.
And where am I?
Where is the location of supplier? Punjab.
So, in that case, should the Punjab government get the tax?
Or should the Goa government get the tax?
Which government should get the tax?
It is a disputed issue.
It is a dispute.
It is a problem.
In that case, the government said, if the location of
supplier and place of supply are different, in different
states, in different states, then don't use your brain.
Charge IGST.
Charge IGST at a fixed percentage.
If your sales price is Rs.1000, and the government says
that it is 18% GST, then Rs.1000 plus 18% IGST.
Do this.
Is the point clear?
When do you charge CGST, SGST, and IGST?
See, GST is fine.
We say that GST will be charged.
You have supplied, you have done sales, you have provided
some services, you will be charged GST.
But which one is GST?
This is the thing to think about.
Which one is GST?
Will you charge CGST, SGST, or IGST?
This is the rule.
Where there is a supplier, look at the location of supplier
first.
Look at the location of supplier.
If the location of supplier and place of supply are in the
same state, then you will charge CGST, SGST.
And if they are in different states, then you will charge
IGST at the same rate.
This is the point.
I hope the points are clear to you.
I hope that these are new points.
Absolutely new points.
So I want to say that consider yourself very lucky that you
were born at a time when all the complexities are over.
When we used to study a long time ago,
I have studied exercise,
I have studied service tax,
I have studied VAT,
I have studied central sale tax.
I have studied so many different acts.
But did it have any benefit?
Did it have any benefit?
It did not have any benefit.
In today's date, everything is closed.
One act is going on.
And this act will never end.
Yes, there will be some changes, but this act will never
end.
Consider yourself lucky that you don't have to work so hard.
You just need to have the knowledge of GST.
I am telling you the knowledge of GST.
The one who is in today's date, his career will be ahead of
others by 3-4 years.
And there is nothing much in it.
If you are understanding, it may seem a little tough now,
because I have not given you any reading yet.
I am just explaining things now.
In the next lecture, I will give you a reading.
I will give you a reading of my notes in the next lecture.
So what will happen with the reading?
I will explain things again.
So you will revise as well.
This is the point.
Till now, I have just given you a basic gist.
I have not gone into the details yet.
I am explaining from the top.
If you still don't understand, don't worry.
I will explain when I give you the reading.
I just want you to understand the knowledge of GST.
In today's date, companies are taking away the children who
have the knowledge of GST.
The work of GST is very solid.
And there is a lot of solid income in this work.
You are not understanding the point.
As you go ahead in the lectures,
I will tell you where are the opportunities of earning.
You have recognized the opportunity of earning.
It is not necessary that you have to work.
You can do some work of your own.
Related to GST.
Friends, this is the point.
With this, I end today's lecture.
In the next lecture,
I will give you a reading.
I will give you some notes.
And we will revise the lecture.
You have said that GST will be charged.
But which one? CGST, SGST or IGST?
There are different acts.
There are different laws.
But in all acts, one thing is written.
Like there are different texts of different religions.
But in all, one thing is there.
That there is only one God who runs the earth.
Now call it Allah, call it God.
Call it God.
Say anything.
It is the same thing.
It is not different.
We will do reading tomorrow.
Till then, thank you very much.