GST Full Form, Definition, Meaning, Calculation,

GST stands for Goods and Service Tax. GST was introduced in India with effect from 1^st July 2017 with a purpose of “One Nation, One Tax.” GST Kya hai? GST is a tax which is levied on all sales & supplies of goods or services in India. It is a form of Indirect tax which subsumed all previous forms of indirect tax that were applicable in India till 30^th June 2017 as mentioned below:

1. Contents

   • Central Government Taxes –
   • Central Excide Duty
   • Duties of Excise (Medicinal and Toilet Preparations)
   • Additional Duties of Customs (known as CVD i.e. Counter Veiling Duty)
   • Special Additional Duties of Custom (SAD)
   • Service Tax
   • Central Surcharges and Cess – so far as applicable on sales of goods and service
   • State Taxes
   • State VAT (Value Added Tax)
   • Central Sales Tax (CST)
   • Luxury Tax
   • Entry Tax of all forms
   • Entertainment Tax
   • Purchase Tax
   • Taxes on lottery, gambling and betting
   • Octoroi
   • State Surcharge and Cess – so far as applicable on sales of goods and service

   Central Government Taxes –

   Central Taxes that have been replaced by GST / subsumed in GST are-

   1. Central Excide Duty

   2. Duties of Excise (Medicinal and Toilet Preparations)

   3. Additional Duties of Customs (known as CVD i.e. Counter Veiling Duty)

   4. Special Additional Duties of Custom (SAD)

   5. Service Tax

   6. Central Surcharges and Cess – so far as applicable on sales of goods and service

2. State Taxes

   – State government taxes that have been subsumed in GST are –

   1. State VAT (Value Added Tax)

   2. Central Sales Tax (CST)

   3. Luxury Tax

   4. Entry Tax of all forms

   5. Entertainment Tax

   6. Purchase Tax

   7. Taxes on lottery, gambling and betting

   8. Octoroi

   9. State Surcharge and Cess – so far as applicable on sales of goods and service

 

GST is chargeable on supply of goods and service at rates declared by GST council which range from 0%, 3%, 5%, 12%, 18%, 28%, 28% + cess.

GST is always included in the MRP of any product or service. For eg: a Parle G biscuit packet of MRP Rs. 5/- is inclusive of 18% GST. That’s also the reason behind Parle G biscuit packets have reduced biscuits in your packet since the gst rate is too high.

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