GOODS AND SERVICE TAX (GST)
Goods and Service Tax (GST) is considered to be an indirect tax system which in fact has gradually replaced many indirect taxes in India (such as excise duty tax, Value Added Tax (VAT), and the service tax). The GST is governed by Goods and Service Tax Act. GST is levied on the supply of goods and services, for every value addition, which is indeed a single domestic indirect tax law for the entire country.
GST is patterned in the following ways:
- Multi-stage ( In the multi-stage, an item goes through multiple change of hands along its supply chain, which begins from the manufacturer to the final sale to the consumer)
- Destination-based tax (Goods manufactured in one state and sold in another state and reaching the final consumer)