What excatly is GST?

Simple terms, if wished not to complicate or the obvious answer is GOODS AND SERVICE TAX.GST is charged on most of the goods and services for domestic consumption. The GST is paid by the customers, but, it is the responsibility to the government by businesses who sell goods and services. Hence, GST is the revenue generated for the government.
Let’s go through the History of GST.The GST term was 1st coined and implemented in France, in the year 1954. It is now adopted by more than 10 countries. INDIA is one of them.
In the current scenario, ATAL BIHARI VAJPAI was called the father of GST. He and ASIM DAS
GUPTA designed the 1st GST model back in 2015 and it was implied in India on 1st July 2017 under our Ex-Finance Minister Arun Jaitely.
One big reason to implement GST in India was to avoid burden and tax on both company and consumer. With the current tax system, there are multiple taxes added at each stage of the supply chain, without taking credit for taxes paid at the previous stage.

Types of GST

1. CGST (Central GST)
2. SGST(State GST)
3. IGST(Integrated GST)
   A) CGST –CENTRAL GST
   The Full form is but obvious, Central Goods and service tax. It is also called the CGST act of 2017. The CGST
   The act has been enacted to make a provision to levy and collect taxes on Intra-State i.e. within the state, the supply of goods or services or both by the Central Government.
   B) IGST – Integrated GST
   The Full form Of IGST is Integrated Goods and service tax, also called as IGST Act 2017. The last IGST the act clarifies that centre would levy i.e charge IGST which would be CGST+SGST on all interstate i.e
   between 2 different states, transactions of taxable goods and services with appropriate provision for the consignment of stock transfer of goods and services.
   C) SGST – State GST
   The full form is State Goods and Service tax, also known as SGST act 2016. Any tax liability obtained under SGST can be set off against SGST or IGST input tax credit only.
   Any person who engages in economic activity including trade and commerce and has a turnover of more than 20 lakh is liable to pay GST.
   The GST is very beneficial from tax as it includes various taxes making the system efficient with very little chances of corruption and Tax invasion. As GST will affect the cascading effect i.e double taxation to tax, Inter-State tax, high logistics cost, it will make manufacturing more competitive.
   This will be beneficial for businessmen and consumer.

By Shubham Gawade