This is my first article, In this, we will get to know about the basic details of GST.
On July 1, 2017, by the President of India GST was launched. After the launch of GST, India moved to One Nation, One Tax, One Market regime. GST are divided into 5 tax slabs for collection of tax i.e 0%, 5%, 12%, 18% and 32%.
So, let us start with the Meaning.
What is GST?
GST is an Indirect Tax.
GST is a tax on Goods & Services.
GST is a Broad-based Value-added Tax.
GST is a Destination based Consumption Tax.
GST is technically paid by suppliers but it is actually borne by Consumers.
GST is a single tax replacing all the indirect taxes levied at central and state level in India.
GST is a tax on the consumption of Products from business sources, & not on personal or hobby activities.
GST was first levied by France in 1954. At present more than 160 countries have implemented GST. Malaysia is the most recent country to join the bandwagon.
Advantages of GST
1. It eliminates the cascading effect of Tax.
2. Higher threshold for Registration.
3. Lesser Compliance.
4. Composition Scheme for small business.
5. Transparent taxation system.
Disadvantages of GST
1. Change in business Software.
2. The higher Tax burden for Small and Medium Enterprises.
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