GST Full Form | Full Form of GST
GST Full Form - Goods and Service Tax
- Here, you’ll get the solution of the following GST related questions: full form of GST , full form of GST tax , full form of GST in India , GST full form
Goods and Service Tax
- GST stands for Goods and service Tax. It's an indirect tax which was introduced to simplify the complicated indirect tax system in India.
- It brings the all other indirect taxes imposed by central and state governments on the manufacture and sale of products and services under one domain at the national level. So, GST is basically a consolidated tax that's supposed to replace all other indirect taxes levied on goods and services.
- It might be based on the uniform rate of tax and can be payable only at the final point of consumption, unlike a cascade tax that's applied at every stage within the supply chain without considering the taxes paid at earlier stages.
- This way of applying a tax on tax is known as the cascading effect of taxes.
- For Ex, A distributor sells a product of price Rs. 100 to a retailer after adding the indirect tax 12%, at Rs. 112. Then the retailer sells an equivalent product of price Rs. 112 to a customer after adding the tax 12% at Rs. 126. During this scenario, due to the cascading effect of taxes, the final price of the product has increased.
- GST may be a transparent tax and also reduces the number of indirect taxes.
- GST will not be a price to registered retailers therefore there'll be no hidden taxes and therefore the cost of doing business are going to be lower.
- Benefit people as prices will come down which in turn will help companies as consumption will increase.
- There is no doubt that within the production and distribution of products, services are increasingly used or consumed and vice versa.
- Separate taxes for goods and services, which is that the present taxation system, requires division of transaction values into value of products and services for taxation, leading to greater complications, administration, including compliances costs.
- In the GST system, when all the taxes are integrated, it might make possible the taxation burden to be split equitably between manufacturing and services.
- GST are going to be levied only at the final destination of consumption supported the VAT principle and not at various points (from manufacturing to retail outlets). This may help in removing economic distortions and bring about development of a standard national market.
- Some Economist says that GST in India would impact negatively on the real estate market. It might add up to 8 percent to the price of new homes and reduce demand by about 12 percent.
- Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there's no major reduction within the number of tax layers.
- Some retail products currently have only a four percent tax on them. After GST, garments, and clothes could become costlier.
- The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With GST, this rate will be greater than fifteen percent and effectively double the tax rate.
- Adoption and migration to the new GST system would involve teething troubles and learning for the whole ecosystem.