Meaning of Goods and Services Tax-:
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 these are taxed separately by the individual state governments. This tax came into effect on July 1, 2017, through the implementation of one hundred and first amendment by the Government of India.
- Goods and Services Tax 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 (Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST), Union Territory Goods and Services Tax (UTGST ) & CESS Act, 2017)
- It will have the huge impact on Indian economy and all Business (Big, Medium and Small)
- Goods and Services Tax(GST) replaced existing following multiple Indirect taxes levied by the central and state governments
- It will Collect in Five parts (Shown as in Diagram)
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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