Knowledge2Health

Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. The GST was introduced in India in 2017 to replace multiple indirect taxes such as VAT, Service Tax, Central Excise Duty, and others. GST is a consumption-based tax, which means that it is levied on the value added at each stage of production and distribution, from the manufacturer to the end customer. The GST has simplified the indirect tax system in India by removing the cascading effect of taxes. The cascading effect refers to the tax on tax, where the same tax is paid multiple times on the same product or service. The GST has eliminated this by allowing businesses to claim input tax credit (ITC) on the taxes paid on their purchases. This has made the taxation system more transparent and efficient. Why is GST necessary for every business? Compliance: GST has made compliance easier for businesses by introducing a single tax system. Earlier, businesses had...