GST meaning or Full for is Goods and Services Tax.
GST i.e. Goods and Services Tax is the indirect tax levied in India on goods and services.
GST makes the whole process of tax on goods and services easier and ensures that the tax on goods and services should be uniform in every state of India so that the cost of any goods is almost the same in the whole of India.
GST tax has been made such that it is charged at the consumption point and not at the origin point
Many people are involved in the process of manufacturing and selling any item, such as a manufacturer, wholesaler, retailer and consumer.
Under the GST process, the tax has to be paid at every stage, such as when the manufacturer sells the goods to the wholesaler, the wholesaler will pay the tax.
At the same time, when the wholesaler sells the goods to the retailer, the retailer will pay the tax and finally consumer.
But all the people except the consumer get tax returns.
GST key points-
- GST was introduced in India by the Parliament on 1 July 2017.
- The GST Council is the governing body of the GST and has a total of 33 members. In which two are from Central Government, 28 from States and 3 are from Union Territory.
- Under the GST process, every shopkeeper and service provider is given a GSTN number from which he can pay his tax and receive returns.
- India’s GST collection is close to one lakh crore every year.
Why GST was needed in India?
Before GST in India, every state imposed different service tax on every good, which was called VAT.
This process had two disadvantages-
- Under this process, the tax levied on any goods was different in different states, due to which the price of the goods would go up and down in different states, and which promoted tax evasion and black marketing.
- Under this process, at every stage, the cost price was also taxed, due to which the cost of any goods was very high.
That is why India needed a tax system in which there should be a uniform tax system in the entire country.
GST has today made the entire indirect text process very easy and almost eliminated tax evasion.
Different types of GST
There is a provision of 4 types of GST tax in India.
- CGST– Central Goods and Services Tax- by Central Government
- SGST– State Goods and Services Tax- By State Government
- IGST- Integrated Goods and Service Tax- By Central Government and State Government
- UTGST– Union Territory Goods and Services Tax- by Union Territory Government
Slabs of GST % in India
What goods and services will be levied in India, it is divided into four slabs.
- 0% slab- The goods covered under this slab attract a GST of 0%.
Under this, mainly agricultural products come, such as fruits, vegetables, fish, meat, books etc.
- 5 % Slab- Widely used products come under this slab, such as shoes, tea, coffee, train tickets, and small restaurants.
- 12- 18% Slab- Daily use items come under this slab, such as mobile, computer, camera, Ayurvedic, medicine, mineral water etc.
- 28 % Slab- Luxury items come under this slab, such as AC Restaurant, Five Star Hotel, Branded Jeans, Telecom etc.
Goods Kept outside GST-
Some goods are excluded from GST, and in future they are also said to be included in GST.
- Petroleum products (Petrol, Diesel)
Benefits of GST
some key benefits of GST are as follows-
- Equal tax on any goods across the country.
- Transparency in tax collection
- There is no need to check goods on every state’s border.
- Simple and Easy online process
- The unorganized sector can be regularized
some other GST full forms-
GST- Goods and services Tax
GST- General Set Theory
GST- Galactic Standard time
Similar Full Forms-