GST
Goods and Services Tax (GST) is a comprehensive tax system implemented in many countries to streamline the taxation process for goods and services. In India, GST was introduced on July 1, 2017, and has significantly transformed the indirect tax landscape. Here are some key aspects of GST:
Components of GST
- Central Goods and Services Tax (CGST): Collected by the central government on intra-state sales.
- State Goods and Services Tax (SGST): Collected by state governments on intra-state sales.
- Integrated Goods and Services Tax (IGST): Collected by the central government on inter-state sales and imports.
Tax Structure
- Goods and Services: Different rates are applied based on the category of goods and services, typically falling into slabs like 5%, 12%, 18%, and 28%.
Input Tax Credit (ITC)
- Businesses can claim input tax credit on taxes paid for goods and services used in the course of business. This helps avoid the cascading effect of taxes and ensures that only the value-added portion is taxed.
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