GST full form is Goods and service tax. Before going further about Goods and services tax, let’s have a look at how tax works in India.
In any of the country, the government needs money for its proper functioning and taxes are a major source of revenue for a government. Thus, the taxes collected by the government are basically spent on the public. So, these taxes are mainly categorized into two types:
- Direct Tax: The tax which is imposed on the Income of the individual is known as Direct Tax. Tax payable amount actually varies on the income earned by the individual from various sources such as salary, house rent income etc. Hence, the more will be the income, the more tax you pay to the government which essentially means the rich pay more tax in comparison to the poor.
- Indirect Tax: It is the tax which is not imposed directly on the income of the individuals rather it is levied on the goods and services which in turn increase the cost (MRP) of goods and services. The indirect tax is basically borne by the end consumer no matter whether he is rich or poor. Out of many indirect taxes, some are levied by the central government whereas some are levied by the state government making the indirect tax system an extremely complicated system.
What is GST?
GST (Goods and service tax) is a consumable tax under which people who are basically engaged in the business of having annual turnover more than Rs. 40 lakhs is required to register as a normal taxable person. It is now applicable to each and every person who is purchasing goods and service at the same rate across India.
Only GST full form and meaning is not sufficient to understand the concept of GST. It is far above from that. Let us know the reason why GST came into existence?
Why GST has been introduced?
Actually, GST has been introduced to replace the multiple indirect taxes levied by the state and central governments in order to simplify the indirect tax system. Almost, it has replaced 17 of the existing state and central indirect taxes like central excise duty, additional customs duty, VAT, entertainment tax, service tax etc and many more to come in future.
The reason behind why it has given the name as Goods and Services Tax is that it is applicable to the supply of both Goods and Services. Read more to understand the entire GST matter: What is Goods and services tax in India
GST Meaning in various Indian Languages
|Languages||GST Meaning in Different languages|
|Arabic||ضريبة السلع والخدمات|
|Bengali||পণ্য ও পরিষেবা কর|
|English||Goods and Service Tax|
|Gujarathi||સામાન અને સેવાઓ કર|
|Hindi||वस्तु एवं सेवा कर|
|Kannada||ಸರಕು ಮತ್ತು ಸೇ ವಾ ತೆರಿಗೆ|
|Malayalam||വസ്തുക്കളും സേവന നികുതിയും|
|Marathi||वस्तू आणि सेवा कर|
|Nepali||सामान र सेवा कर|
|Punjabi||ਗੁਡਸ ਐਂਡ ਸਰਵਿਸਿਜ਼ ਟੈਕਸ|
|Sindhi||سامان ۽ خدمتون ٽيڪس|
|Tamil||பொருட்கள் மற்றும் சேவைகள் வரி|
|Telugu||వస్తువులు మరియు సేవల పన్ను|
|Urdu||سامان اور خدمات ٹیکس|
What are the Components of GST?
There are basically three taxes applicable now in the current regime under the GST tax system: