GST

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GST

Meaning:

GST, or Goods and Services Tax, is a comprehensive indirect tax that is applied to the supply of goods and services across India. It has replaced multiple indirect taxes, such as VAT, service tax, and excise duty, and is designed to ensure “One Nation, One Tax, One Market.” In essence, GST is the tax you pay when purchasing goods or services.

Example:

For example, if you purchase a laptop for ₹50,000 and the GST rate is 18%, you will pay a total of ₹59,000, which includes the GST.

How to understand GST:

GST simplifies the tax structure, making it easier for businesses and consumers.

It helps improve compliance and reduces tax evasion through increased transparency.

Uses of GST:

GST is used to tax sales, purchases, and consumption of goods and services, regulate business transactions, and provide input tax credits to businesses.

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Disclaimer

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GST

GST is used to tax sales, purchases, and consumption of goods and services, regulate business transactions, and provide input tax credits to businesses.