what is GST and how set toff is possible

Question

Accepted Answer

GST stands for Goods and Services Tax, a consumption tax levied on the supply of goods and services in India.

GST is a value-added tax levied on most goods and services sold for domestic consumption.
It is a single tax that subsumes various indirect taxes like service tax, VAT, excise duty, etc.
GST is set off against the input tax credit available on the purchase of goods and services.
Businesses can claim input tax credit on the GST paid on their purchases to reduce their tax liability.
For example, if a company sells a product for Rs. 100 with a GST rate of 18%, it collects Rs. 18 as GST from the customer and pays Rs. 10 as GST on its inputs. The company can set off the Rs. 10 against the Rs. 18 collected, resulting in a net tax liability of Rs. 8.

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