Goods And Services Tax (GST)
The goods and services tax (GST) is a value-added tax (VAT) levied on most goods and services sold for domestic consumption.
Understanding the Goods and Services Tax (GST)
The goods and services tax (GST) is an indirect federal sales tax that is applied to the cost of certain goods and services. The business adds the GST to the price of the product, and a customer who buys the product pays the sales price inclusive of the GST. The GST portion is collected by the business or seller and forwarded to the government. It is also referred to as Value-Added Tax (VAT) in some countries.
Key Points For GST
Our clients are often surprised by the possibilities we present to them; by thinking outside the box we present exciting new ventures:
- The goods and services tax (GST) is a tax on goods and services sold domestically for consumption.
- The tax is included in the final price and paid by consumers at point of sale and passed to the government by the seller.
- The GST is usually taxed as a single rate across a nation.
- Governments prefer GST as it simplifies the taxation system and reduces tax avoidance.
- Critics of GST say it burdens lower income earners more than higher income earners.
General Questions
The goods and services tax (GST) is a value-added tax (VAT) levied on most goods and services sold for domestic consumption.
GST is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments. Under GST, both the Central and State Governments share the authority to levy and collect taxes on goods and services.
GST rates in India for various goods and services are divided into four slabs: 5% GST, 12% GST, 18% GST, and 28% GST. Since the inception of the Goods and Services Tax, the GST council has revised the GST rates for various products several times (GST).
Types of GST in India
There are Four GST types namely Integrated Goods and Services Tax (IGST), State Goods and Services Tax (SGST), Central Goods and Services Tax (CGST), and Union Territory Goods and Services Tax (UTGST). The taxation rate under each of them is different.
- Integrated Goods and Services Tax (IGST)
- State Goods and Services Tax (SGST)
- Central Goods and Services Tax (CGST)
- Union Territory Goods and Services Tax (UTGST)
Objectives of GST
‘One Nation, One Tax’
GST took the place of many indirect taxes that existed before. It was introduced with a core motive and policy called the ‘One Nation, One Tax’. It was introduced as so to provide set tax rates for a service/product that every state would follow. It even simplified administering taxes and compliances.
We are always available to you through Chat, Email, Call or social media.
Thanks a lot Deepti Ji, for filing my Income Tax Return.
Cooperative staff and very nice behaviour. Completely online with excellent communication. They explained each & every clause in detail. Overall very good CA firm in Vadodara for any tax matters.They focus on providing best services and building long term associations, rather than short term benefits.
The team is highly knowledgeable, responsive, and has helped me navigate complex tax matters effortlessly.
