Defination Of GST Tax – What Is Full Form Of GST
What is GST Mean ?
- Direct Tax :- Direct tax mean an Individual or organization pay tax directly to the government .For example :- A person buy a house or land then he/she has to pay tax directly to government as a Property Tax. Same as Income Tax and Assets Tax is also direct tax .
- Indirect Tax :- An Indirect tax is shifted from one tax padyer to another which means an one entity has to pay tax in supply chain to government but it passed on the consumer as part of the price of a good or service ultimately consumer pay more for product due to number of Indirect tax . For example :- A person go to any restaurant name domino’s and at time of bill payment person has to pay bill included with number of Indirect tax like service tax, sales tax, custom duty tax as result tax raise 25% to 30%. So price of food in restaurant increase .
After GST all taxes are removed and only one Indirect tax remain known as GST.After GST transparency increase between government and public.
What is CGST,SGST and IGST ?
- Inter-State supply :- An Inter-state supply of good or service is one where the location of supplier & place of supply are from different state.
- Intra-State supply :- An Intra-State supply of good or service is one where the location of supplier and place of supply are from same state.
IGST mean Integrated Good and Service Tax will collected by central government . It also apply on Import.
SGST means State Good and Service Tax which is taxed by State government to remove the current tax like sales tax,luxury tax ,entry tax etc and make single market. Collected tax will be shared to State.
By these two image you can understand better About SGST,CGST,IGST.
Advantage And Disadvantages of GST
GST Tax Advantage
GST is a transparent tax system and also reduce number of Indirect tax.
Every one has to pay tax which reduce black money market.
Movie tickets,Television,washing machine,sedan car,Two – wheelers expected to be cheaper.
GST will not be coated to registered retailer therefore there will be no hidden tax and the cost of doing business will be lower.
Cost of many basic product will reduce which help to middle class family.
After GST no Double Taxation for example: On 10 rupees product manufacturer has to pay tax to government after that dealer has to pay tax on same product after that retailer has to pay & ultimately Sum of all taxes and retailer profit margin and all increase product which is paid by Consumer.
No complications and less paper burden after GST.
GST Tax Disadvantages
Service will became expensive e.g Telecom,banking,airline etc.
It will take some time for the people to understand it’s important.
Luxury hotels, Luxury items will be costlier.
Mobile,DTH bill became costlier.
Price of garment & clothes become more expensive.
Residential rent,School Fees , Courier service, Aerated drinks, Cigarettes and tobacco product become more costlier.
Laptop become more costlier.