GST stands for Goods and Services Tax which is an indirect tax level on the supply of goods and services. It is started in India from last few years before there were different kinds of taxes in every single state. So now this is a better way to do building without extra taxes.
When Did GST Start
Well GST was a very old plan which was neglected by our politicians. It was a great way to do business in other states if the businessman even doesn’t have any idea about the state.
After GST launch all the businessman now can deal with their products in any country any state which helps their products to grow in a very good manner. GST got started or I can say got implemented on 1 July 2017 by the government of BJP.
GST Replaces Other Taxes
If we talk about the taxes which we used to pay because of any reason and the common man even don’t understand why the hell he is paying all the taxes which is not even related to him. Well GST has replaced all the taxes by a single tax.
Before the GST of goods were in the tax range of 26.5% but after GST they have mostly come more than 7.5% which is around 18% of GST. Now you can understand how helpful the GST is for India and to grow India.
How GST works
Well GST after reducing all the other taxes now GST works for all the businessmen. It might be the manufacturer to the wholesaler to the retailer or the customer it helps each and every person to grow their business or to grow their income.
GST makes the manufacturer and the wholesaler comes all the taxes on the same rate, because most of the time the wholesaler used to get the product from the manufacturer and add a different kind of taxes on it, and then provide it to the retailer. After the retailer receives the product he added his own taxes and then provided to the customer.
This product used to get too much costly for the customer but after GST all the problems are solved. An each and every person use to take taxes on the product.
But now there are some limitations from the government on which they can’t even and go ahead and take any kind of access from any other businessman.
Different Types of GST
- CGST its full form is central goods and service tax number.
- SGST well it’s the full form is state goods and Service Tax.
- IGST which means integrated goods and services Tax
Which means union territory Goods and services tax base of the 3 different kinds of taxes. Which are now present in India with the help of all these taxes India has now been in profit.
Taking their taxes and investing in the welfare of the public it just seems that there are only 3 main GST which we need to pay.