Do you know what is the full form of GST? Many taxes fixed by the government were applicable to us. At the same time, it is not that they are not applicable now. But a few years before the government started a tax which is the root of all taxes. That is the collection of all taxes. It is called GST. Do you know what is the full form of GST? If not then this article of today is going to be really full of information for you.
At the same time, we all Indians must know the answer to the questions about what is GST, what will be the full form of GST, what is the type of GST, etc. At the same time, students must know about it, because often many related questions are asked in competitive exams. Then without delay let’s start and know what is GST Full Form
What is GST?
GST is a federal tax. GST is an indirect tax, levied on the sale of goods and services. It has been implemented across the country from 1 July 2017. GST is paid by consumers, but it is remitted to the government by businesses selling goods and services.
In fact, GST provides Revenue to the government. GST is added to the price of products in Business, and a customer who buys a product pays the selling price and GST. The GST portion is collected and sent to the government. It is also known as Value Added Tax (VAT) in some countries.
GST full form
GST’s full form is Goods and Services Tax. The full form of GST is made up of two words, Goods and Services Tax. Goods mean goods which we also call Products which refers to all types of movable property, including claims, crops, hay, and land-related things which are set aside prior to supply or under a contract of supply Consent to
Services Tax means Central Tax, State Tax or Tax on the supply of any goods or services. As I have already told, the full name of GST is Goods and Services Tax. Before knowing more about Goods and Services Tax, let us try to understand how Taxes work in India.
The government of any country needs money for its functioning and tax is a great source of money for the government. The tax thus collected is spent by the government on the public.
These taxes are broadly classified into two types:
- Direct tax
- Indirect tax
Direct Tax – Direct tax is levied on a person’s income. The amount of tax payable is different from the income received by a person from various sources like salary, house rent income etc., so the more you earn, the more tax you pay taxes to the government, which means that the rich get more than the poor. More tax has to be paid.
Indirect tax: Indirect tax is not directly levied on the income of individuals. Instead, it is levied on Goods and Services which in turn increases the cost of goods and services to MRP. Some of these are levied by the central government while some are levied by the state government, making the indirect tax system a complex system.
To simplify the indirect tax system, the GST has been introduced to replace many indirect taxes levied by the state and central governments.
What is the full form of GST?
GST stands for “Goods and Services Tax”. At the same time, it has been implemented in the whole country from 1 July 2017.
Types of GST
Let us now know about different types of GST. Detailed information about them is provided below.
- CGST – CGST means ‘Central goods and services tax’ which means that the amount collected under this part of the tax is under the control of the Central Government.
- SGST – SGST means ‘State goods and services tax’ which means that the amount collected under this part of the tax is under the control of the State Government.
- IGST – IGST means integrated goods and services tax ‘which means that the amount collected under this type of GST will be paid to both the Central and State Governments.
- UTGST – UTGST means ‘Union Territory goods and service tax’ Goods and Services Tax (UTGST) for Union Territory’.
Union Territories in India are placed under a special GST. Which is called “Union Territory Goods and Services Tax” as per GST Regulatory 2016. UTGST is responsible for implementing uniform tax for all union territories in India.
To understand this better let us take an example: –
If the products are made in one state and then sold in the same state, CGST and SGST will be applied and the total tax amount will be distributed in half and each half will be received as CGST and SGST.
If a person buys a CCTV camera, he has to pay 18% tax, so CGST will be 9% and SGST will be 9% of goods and it will be mentioned separately in the bill.
What are the different types of GST rates?
The following are the different types of rates of GST.
According to the GST rate, things related to day-to-day work and needs are placed in the NIL slab and four levels of 5%, 12%, 18% and 28% have been set in the GST.
Some items such as sugar, tea, roasted coffee beans, edible oils, skimmed milk powder, milk food for children, packed cheese, cotton yarn, fabric, reed broom under the GST 5% tax, 500 Footwear up to Rs, Newsprint, Kerosene under PDS, Domestic LPG, Coal, Solar Photovoltaic Cells and Modules, Cotton Fiber, Fabrics up to Rs 1000.
Under GST, some items such as butter, ghee, mobile, cashew, almonds, sauces, fruit juice, coconut water, incense sticks, umbrellas, clothes, etc. which are more than Rs.1000 under the ambit of 12% tax slab.
Under GST, certain items like AC, Refrigerator, Laptop, and Oil Oil, Soap, Toothpaste, Capital Goods, Pasta, Corn Flakes, Jams, Soup, Ice Cream, Toilet / Facial Tissues, Iron / Steel, under the 18% tax slab There will be fountain pens, computers, man-made fiber, footwear worth more than Rs 500, etc.
The 28 percent tax slab under GST includes certain items such as consumer durables, cement, chewing gum, custard powder, perfumes, shampoos, makeup, crackers, makeup accessories, and motorcycles.
The government says that 81% of such items are those which fall under the GST slab of less than 18%. Only 19% of the goods fall above this.
I hope you have liked this article of mine, what is the full form of GST. It has always been my endeavor to provide the readers with complete information about the GST Full Form in which they do not have to search in the context of that article on any other site or internet.