Understanding India's GST system: What it means for consumers and businesses?
The Goods and Services Tax (GST) is an indirect tax system that was introduced in India on July 1, 2017, to replace a complex network of multiple indirect taxes such as excise duty, service tax, and VAT. The GST is a consumption-based tax system that is applied at every stage of the supply chain, from the manufacturer to the end consumer. It is a destination-based tax, which means that it is charged where the final consumption of goods or services takes place. Understanding the GST system is crucial for businesses and consumers in India as it affects the cost of goods and services, and compliance with the GST laws is mandatory. Let's learn the basics of India's GST system and what it means for consumers and businesses. The basic understanding of GST GST Rates and Classification: The GST is levied on five different tax rates - 0%, 5%, 12%, 18%, and 28%. These rates are based on the classification of goods and services, and each product or service is assigned a specific GST rat...