GST

GST, or Goods and Services Tax, is an indirect tax imposed on the supply of goods and services. It is a multi-stage, destination-oriented tax imposed on every value addition, replacing multiple indirect taxes, including VAT, excise duty, service taxes, etc.

Key Features of GST:

Single Tax System: GST replaces a multitude of indirect taxes with a single tax, simplifying the tax structure.

Destination-Based Taxation: The tax is collected at the point of consumption, rather than the point of origin.

Input Tax Credit (ITC): Businesses can claim credit for taxes paid on purchases, reducing their overall tax liability.

Four Tax Slabs: GST is levied at 5%, 12%, 18%, and 28%, depending on the type of goods and services.

Digital Tax Filing: GST promotes transparency through its online tax payment and return filing system.

Benefits of GST:

Simplified Tax Structure: A unified system replacing multiple indirect taxes.

Boosts Economic Growth: Reduces the tax burden on businesses, encouraging investment.

Promotes Compliance: Digital filing makes tax compliance easier for businesses.

Reduces Cascading Effect: Ensures that tax is only paid on the value addition at each stage.