What is GST (Goods and Services Tax)
What is GST?
Goods and Service Tax (GST) is a new destination-based tax that is levied on the sale and purchase of goods and services. It is a consumption based tax, meaning the end consumer is responsible for paying the actual tax. Although the tax will be levied at each stage of the supply chain, the consumers will get input tax credit (ITC) for the tax paid by them at earlier stages, which they can reuse for the payment of the final tax. As a result, a consumer will be paying only the tax amount applied to the final transaction. GST will effectively replace all the existing and previous taxes including VAT, Service Tax, Excise Duty and other taxes in India, thus realizing the concept of “One tax, one nation”.
