GST full form is Goods and Services Tax. It constitutes an indirect government sales tax. It is used to the price of specific goods and services.
Goods Services and Taxes we can also call indirectly one tax in one country which makes one market in India.
GST started on 1 July 2017 and it was inaugurated by our honorable Prime Minister Narender Damodar Das Modi for which the taxes of one product but tax is the same in all-state.
Why did GST come to India?
We know that in India there are 17 different taxes for a single product before 2017. This type of taxation automatically increases the production rate for both customers and retailers.
After GST seventeen taxes are replaced with one tax that is GST. That makes one tax in one Nation.
Before GST there are taxes like Excise Duty, VAT Entry Tax, Central Sales Tax, Stamp Duty Tax, Electric Tax, Telecome Licence Fees, Turnover Tax, Lottery Tax, and Sales and Goods Tax, etc.
These Taxes are always different in different states but after GST these taxes are replaced and made into one tax.
Types of GST?
GST are three different types such as IGST, CGST, and SGST .these taxes are parts of Goods and Services.
1. IGST (Intrastate GST)
This tax can be taken by the intrastate government. It means a product made in a state or country but the sale in another state, in this case, IGST can be taken in this product.
For example, a product made in a state or country, and provides a 20% tax like GST. In this case, a 10% tax has taken CGST and a 10% tax taken SGST but if this product sells in another state then it gives 20% IGST tax to Government.
IGST took only by the central Government. Earlier, on the sale of a product, the Government takes different taxes but now it replaces one tax which is IGST.
2. CGST (Central GST)
This tax can be taken by the central government in which products are made and sold in a country or a state. It takes by the central government.
Earlier, there are taxes like Excise Duty tax, custom Duty tax, or any central tax but now it replaces in one tax that is CGST.
3. SGST(State GST)
These taxes can be taken by the State Government in which the product is made and sold in the middle part of the state. This tax takes by the State Government, not the Central Government.
Entertainment tax, value-added tax, and Entry Tax are the tax have to pay on the product or service in different but now it replaces in one tax that is SGST.
Benefits of GST
Before GST all taxes were only paid by the consumer. Retailers, Manufacturers, and Transporter do not pay any taxes.
But Nowadays with the help of GST taxation, all can be given tax according to his work. We know GST are three types and these three types of GST are paid by both manufacturer and customer and retailer.
GST makes it simple and safe for consumers, retailers, and manufacturers. Mostly it is very effective for rural and poor people. In this case, the consumer can not pay any other taxes on a product except GST.