GST is a kind of indirect tax introduced in India in 2017. It means Goods and Services Tax. The GST aims to reduce the complexity present in the Indian tax system.
The GST includes Central GST, State GST and Integrated GST. Central GST would be imposed by the Central government. The State GST would be imposed by the State government. The Integrated GST would also be imposed by the Central government on the interstate supply of goods and services.
The Goods and Services Tax is a consumption-based tax. It is the sum of the indirect taxes like sales tax, purchase tax, and service tax. Generally, it is imposed on goods, services, sales and manufactures at a national level. It would be imposed on all the goods other than natural gas, aviation, crude petroleum, diesel etc.
India has a very complex system of taxation. It has many taxes and tax on the same item, again and again, know as cascading of tax. It has come with a view to reducing the overall taxes. Also, with different changes which are made with every financial year, by many state government and central government.
Therefore, with the introduction of GST, some of the problems would possibly get resolved. With GST, only one indirect tax would have to be paid by the trade and industry. All other indirect taxes are included in GST.
However, direct taxes like corporate tax, income tax and capital gain tax will not be influenced by the GST.
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Question on GST
What is GST in simple words?
GST is a kind of indirect tax introduced in India in 2017. It means Goods and Services Tax. The GST aims to reduce the complexity present in the Indian tax system.
Who is the founder of GST?
Asim Dasgupta to design a GST model. in 1999 Atal Bihari Government come with the idea of GST.
What are the 3 types of GST?
Central Goods and Service Tax, State Goods and Service Tax, Integrated Goods and Service Tax.
Why GST is introduced?
To simplify the tax system ‘One Nation’, ‘One Tax’. With this India come with a single tax regime like many other nations of the world.
What are the benefits of GST?
The GST will reduce tax rates, remove multiple point taxation, and increase revenues.
