What is the Full form of GST?
The full form of GST is Goods and Service Tax. GST is a single, indirect tax levied by the Indian Government. It may be one of the country’s most significant tax reforms. The bill is designed to bring together from all indirect taxes including VAT, Central Excise Tax, Luxury Tax, Service Tax Act, Entertainment Tax and Entry Tax.
To state it clearly, all products and services manufactured in the nation associated with the imported products would provide a standard indirect tax through GST, implying GST. The GST Act was passed in Parliament on March 29, 2017. The tax came into force on July 1, 2017. GST was done to improve the nation’s economic growth and also to deal more effectively with taxes.
Types of GST
There are various types of GST which are
- Central Goods and Services Tax (CGST)
CGST is the tax levied on intrastate service and product distribution. Under these taxes includes the Central Excise Duty, Services Tax, Additional Excise Duty, CVD (Countervailing Duty) & the excise duty on the Medical & Toiletries Preparation Act.
- Integrated Goods and Services Tax (IGST)
IGST applies to the taxes paid for the international delivery of services & goods. The products are, for example, traded among two states, including Karnataka & West Bengal the IGST would apply. Besides, IGST is imposed on exports as well as imports of services and product from India.
- State Goods and Services Tax (SGST)
SGST is the tax levied on goods and services provided within the boundaries of a given state. The act puts the various state taxes, such as luxury tax, state income tax, entry tax, entertainment tax and so on under one umbrella.
Commodities not subject to GST
List of commodities does not fall under GST are listed below.
- Fillets & Fish
- Live animals
- Trees & live plants
- Coffee & Teas
- Dry fruits
- Edible grains
- Musical & Industrial instruments
- Pharmaceutical & Drugs
- Claws & hooves.