GST-Introduction, Applicability, Benefits, and Components
Introduction to GST Goods and Service Tax introduced by the government of India is a comprehensive indirect tax policy for several Indirect Taxes in India. GST came into existence from 1 July 2017 with the concept of ‘One Nation One Tax’. GST is an indirect tax applicable to the supply of goods and services. This tax regime has surpassed several policies to become the best tax collection policy in India. As per the GST regime, tax is imposed at every point of sale. Like for sales within state premises, Central and State GST is charged and for sales outside state premises, integrated GST is charged. Let’s begin with the main mechanism of GST: How does the GST work? GST is a 'comprehensive tax' that is imposed at ‘multiple stages’ and is charged as per the 'destination of the consumer'. It adds to the value of the product. Multiple Stages Several steps are involved from making to delivering the end product to the consumers. Like buying raw materials...