Goods And Services Flashcards, test questions and answers

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What is Goods And Services?

Goods and Services Tax (GST) is a form of indirect tax levied on the sale, manufacture and consumption of products or services in India. It was introduced into India by the Government of India with effect from 1 July 2017. GST is mainly administered by Central Board of Indirect Taxes and Customs (CBIC). The aim behind implementing GST was to replace all existing central as well as state taxes such as Value Added Tax, Service Tax, Luxury Tax etc., thus forming a uniform taxation system throughout the country. The main objective behind introducing Goods and Services Tax was to remove cascading effects of multiple taxes levied on goods at different stages while they move through the supply chain that ultimately increases prices for consumers. Under this new regime not only Centre but also states will have the power to levy GST over goods and services within their respective jurisdictions. This ensures that there are no double taxation’s imposed on any product or service in any stage of its movement which helps in making Indian market more competitive due to lower prices for consumers as compared to other markets where similar rate of tax is applicable across many countries globally. GST has different rates applicable depending upon nature & type of goods & services being provided like 0%, 5%, 12%, 18% & 28%. In addition, some items are kept outside purview like petroleum products, alcohol for human consumption etc., apart from these few items all other items are subjected to GST meaning both centre & state governments have right over them now instead it used be exclusive rights before implementation recently so that revenue base can increase significantly resulting betterment overall economy nationwide basis here onwards than ever before..