Want to know about GST??
Here are some basics to GST ..
Q. What is GST in India?
A. GST is an indirect tax levied on supply of either goods, services or both at every step of production process, but is also refunded to all the parties as a part of production process excepting the final consumer.
Q. Why was GST introduced in India?
A. GST has been Introduced in India basically to remove the cascading effect of tax and also to reduce the burden of tax payers from a bulk taxation compliance to only one tax compliance which is GST.
Moreover different indirect taxes which were charged pre gst regime had different rates according to different state requirements and lot of documentation processes which made ot difficult and tedious for business entities to work with.
By implementing GST the government has tried to bring a concept of "One Nation One Tax" and also reduce the documentary burden as everuthing has been digitalised
Q. What are the types of GST?
A. Types of GST comes with the concept of place of supply.
* If the place of supply of your goods, servives or both are outside your place of business Interagated GST or IGST is levied
*If the place of supply is same as the place of business then Central GST or CGST and State GST or SGST is levied equally and simultaneously
* If your place of supply is a Union Territory then Central GST or CGST and Union Territory GST pr UTGST is levied equally and simultaneously
1. IGST & CGST is collected directly by the Central Government whereas SGST is collected by the respective State Government
Hope this was helpful as for the basic concepts to GST