The full form of GST is "Goods and Services Tax". GST is a comprehensive indirect tax introduced in India on 1st July 2017, replacing the previous multiple indirect taxes such as excise duty, service tax, VAT, and others.
GST is a destination-based tax levied on the supply of goods and services. In India, It is a value-added tax that is collected on the value added at each stage of production or distribution, with credit allowed for any tax paid on purchases made for business purposes. GST aims to create a simplified, single tax system that eliminates the cascading effect of multiple taxes and promotes ease of business in India.
Various indirect taxes subsumed in GST are.
Central Excise Duty
Service Tax
Additional Excise Duty
Additional Customs Duty or Countervailing Duty (CVD)
Special Additional Duty of Customs (SAD)
Value Added Tax (VAT)
Central Sales Tax (CST)
Luxury Tax
Entertainment Tax
Entry Tax (all forms)
Purchase Tax
Octroi
Taxes on advertisements
Taxes on lotteries, betting, and gambling
Why was GST introduced in India?
GST, or Goods and Services Tax, was introduced in India to create a single, comprehensive indirect tax system to replace the complex and multi-layered indirect tax structure that existed earlier.
The following were the main reasons for introducing GST in India:
To eliminate the cascading effect of taxes: Under the previous tax regime, taxes were levied on top of taxes, resulting in a cascading effect that increased the cost of goods and services. GST, with its seamless credit mechanism, eliminates this cascading effect, making goods and services more affordable.
To simplify the tax structure: The previous tax regime had a complex and multi-layered tax structure that was difficult to understand and comply with. GST, with its simplified tax structure, reduces the compliance burden for businesses and makes it easier for them to understand and pay taxes.
To promote ease of doing business: The introduction of GST has made it easier for businesses to operate across different states in India. Under the previous tax regime, businesses had to comply with different tax laws in different states, which increased their compliance burden. GST has created a uniform tax regime across India, making it easier for businesses to operate.
To boost economic growth: GST is expected to boost economic growth by enhancing tax compliance, reducing tax evasion, and promoting the formalization of the economy. It is also expected to increase tax revenue for the government, which can be used for infrastructure development and other social welfare initiatives.
By amalgamating a large number of Central and State taxes into a single Tax, GST has emerged as the biggest taxation reform in the economy post-independence. As an indirect tax, GST is included in the MRP of goods purchased or the fee of service paid by a person. GST is a comprehensive tax structure covering both goods and services, viz. Goods and Services Tax (GST). The simultaneous introduction of GST at both the Centre and State levels has integrated taxes on goods and services for the purpose of setting off and ensuring that the cascading effect of taxes is resorted to. Especially in cases of earlier tax regimes.
S No | Language | GST full form in Various Languages |
1 | GST full form in Hindi | वस्तु एवं सेवा कर |
2 | GST full form in Marathi | वस्तू आणि सेवा कर |
3 | GST full form in Gujarati | માલ અને સેવાઓ કર |
4 | GST full form in Punjabi | ਗੁਡਸ ਅਤੇ ਸਰਵਿਸਿਜ਼ ਟੈਕਸ |
5 | GST full form in Malayalam | വസ്തുക്കളും സേവന നികുതിയും |
6 | GST full form in Bengali | পণ্য ও সেবা কর |
7 | GST full form in Kannad | ಸರಕು ಮತ್ತು ಸೇವೆಗಳ ತೆರಿಗೆ |
8 | GST full form in Telegu | వస్తువులు మరియు సేవ పన్ను |
9 | GST full form in Tamil | பொருட்கள் மற்றும் சேவைகள் வரி |
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