What is GST?
The main source of income for the government is tax and every government wants to keep its process as simple as possible, so that it is easy for the government and the people to understand it. GST works as a single tax in a country instead of many taxes.
GST was introduced on 1 July 2017 by the government of Prime Minister of India Narendra Modi with the idea of One Nation One Tax, which aims to increase the economic development of the country. Although the first idea of bringing a new indirect tax system in the country came in the year 2000 itself. But it was implemented in the year 2017.
The full form of GST is Good and Service Tax or it japan whatsapp data is a tax system. Where earlier there were different types of taxes in India, now only one type of tax will be levied through GST, which includes all the previous taxes.
In this way, through GST, service tax, excise duty, VAT and about 12 cess have been abolished. In this way, GST is the biggest reform of the indirect tax system after independence. It is a good thing to have one tax for a country. But it is half true that GST is that tax.
Direct Tax
All the taxes that the government levies on your work or on your personal goods are called direct taxes. These include income tax, property tax, corporation tax, etc.
All these taxes have been kept the same as before. You have to pay all these taxes. GST has nothing to do with all these taxes.
indirect tax
Indirect taxes are all those taxes which you pay for your business or by buying and selling any goods. Taxes like excise duty and VAT used to come under this category, GST has replaced all these taxes. Now you do not need to pay 17 types of indirect taxes. You will have to pay only one GST.
So you can say that the 2 types of taxes that were levied in India have been replaced by GST by removing 17 types of indirect taxes. Now you do not need to pay any kind of indirect tax, you only have to pay GST.
There are two types of taxes in India
-
- Posts: 77
- Joined: Thu Dec 26, 2024 7:11 am