GST ( Goods & Services Tax) is one of the biggest reforms in the history of Indian tax system. GST affects the indirect tax system.
It is a comprehensive tax, levied on manufacture, sale and consumption of goods and services, at the national level. With the implementation of GST, the plethora of indirect taxes at both the central and state level have been done away with and merged into a single one – GST.
- SGST – State GST – collected by the state government
- CGST – Central GST – collected by the central government
- IGST – Interstate GST – collected by the central government
GST helps provide:
- minimal physical involvement and consequently less friction and corruption
- lower compliance cost compared to earlier system of registration in multiple cities
- reduction in tax evasion
- input and output balance
- prevents multiple taxation of same good/service
Any entity required to get GST has to apply for the same and once allotted needs to mandatory charge and submit timely GST and file return
Source: Wikipedia and Invest India