What kind of tax is GST? The Goods and Services Tax, or GST in India, is an indirect tax that has mostly superseded other indirect taxes including the excise duty, VAT, and services tax. We all pay GST but not all of us know that it is an indirect tax. The Goods and Service Tax Act was approved by the Parliament on March 29, 2017, and it became effective on July 1 of that same year.
What type of tax is GST?
It is an indirect tax. In other words, the provision of goods and services is subject to the Goods and Services Tax (GST). Every value addition in India is subject to the comprehensive, multi-stage Goods and Services Tax Law, which is dependent on the destination. A single domestic indirect tax law, known as GST, applies to the entire nation.
Indirect taxes include the Goods and Services Tax (GST). The Central Excise Duty, Countervailing Duty, Service Tax, Additional Excise Duty, Purchase Tax, Entertainment Tax, Luxury Tax, and State Value Added Tax/Sales Tax have all been absorbed by it.
India's GST went into effect on July 1st, 2017. The Central Goods and Services Tax Bill was approved by the Lok Sabha on March 29 and the Rajya Sabha on April 6, 2017.
What are the components of GST?
Now that you know GST is what kind of tax, let me tell you about its components. Under this arrangement, three taxes are applicable: IGST, CGST, and SGST.
CGST: This is the tax that the Central Government (e.g., Maharashtra) collects when a sale occurs within a state.
SGST: This is the tax that a state government collects from a sale that occurs inside its borders, such as one that takes place in Maharashtra.
IGST: An interstate sale, such as one from Maharashtra to Tamil Nadu, is subject to IGST, which the federal government collects.
I hope my answer helps you understand what kind of tax is GST.
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What Kind of Tax is GST?
Zaidi Khan
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2023-07-31T22:33:02+00:00 2023-07-31T22:56:15+00:00Comment
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