GST, or Goods and Services Tax, is an Indirect tax designed to replace other Indirect taxes such as value-added tax, service tax, purchase tax, and excise duty. GST is applied to the supply of certain goods and services in India. GST is the only tax applicable all over India.
Tax Laws Before the Implementation of GST 1. In the past, the Centre and State governments used to collect taxes separately. Depending on the state, the tax regimes were different. This caused a lot of confusion and made it difficult for businesses to operate smoothly. Now, the GST has unified the tax collection process and made it simpler and more efficient. 2. Even though import taxes are usually levied on businesses or corporations, the burden of those taxes is almost always eventually passed down to the consumer in the form of higher prices. Similarly, with direct taxes like income tax, the taxpayer must pay the tax. 3. Prior to the introduction of GST, direct and indirect taxes were present in India.
Types of GST 1.
Central Goods and Services Tax
2.
State Goods and Services Tax
3.
Integrated Goods and Services Tax
4.
Union Territory Goods and Services Tax