Goods and Services Tax (GST) meaning an overview

What is GST
What is GST

Goods and Services Tax (GST) is an indirect tax levied in India on the sale of all type of goods and services Except Petroleum products and Alcoholic drinks. Petroleum products and Alcoholic drinks are taxed separately by the individual state governments. GST tax came into effect on July 1, 2017, through the implementation of one hundred and one amendments by the Government of India.

  • It is one indirect tax for the whole nation, which will make India one unified common market.
  • Vast reform in Indian indirect taxation, the likes of which the country has not seen since Independence.
  • Single Tax on both supply of goods as well as the supply of services
  • The system of taxation will simplify indirect taxation for both (Tax Payer and Tax collector).
  • It will reduce the complexities of the number of Taxation because in GST will replace many types of indirect taxes (shown as under)
  • Cascading effect of taxation removed.
  • The way to do business in India will be changed by GST.
  • It is a combination of 5 acts CGST, SGST, IGST, UTGST & CESS Act, 2017
  • It will have a huge impact on the Indian economy and all Business (Big, Medium, and Small)
  • GST replaced existing following multiple Indirect taxes levied by the central and state governments

subsume Taxes

  • It  will Collect into Five parts (Shown as in Diagram)

Goods and Services Tax collected by

IGST Collected by central but it will share with the state where actual consumption of goods was made by the end-user.

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