What is GST?
GST or Goods and Services tax is a new tax reform introduced by the Government of India as a way to simplify the collection of Indirect taxes.
It replaces a lot of other complicated taxes like VAT, Excise duties etc to be replaced with a single tax called GST.
Taxes replaced by GST are:
1. Value Added Tax
2. Service tax
3. Excise Duties
4. Sales Tax
5. Octroi
India is the 165th country to implement the GST system. GST system in India is not single rate system. Infact, there are 5 different rate slabs 0%, 5%, 12%, 18% and 28% . In addition to this, some items like tobacco, pan masala etc will also have a compensation cess on them to increase the tax rate. The tax slab system will be explained in detail in the coming posts
GST in India is also a three tax system, namely SGST, CGST and IGST. This is dependent on the Place of Supply of a particular goods or service. This also shall be explained in detail in the coming posts.
Welcome again to this Blog and I hope you will find it useful for your works. Please comment below on any topics that you want me to discuss about.
Good day!
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