What is GST. Differences between GST and VAT.

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GST is a value-added tax levied on goods and services. It replaced VAT and other indirect taxes in India.

GST is a comprehensive indirect tax that is levied on the supply of goods and services.
It is a destination-based tax, which means that the tax is collected at the point of consumption.
GST has subsumed various indirect taxes like VAT, excise duty, service tax, etc.
Unlike VAT, GST is levied on both goods and services.
GST has a multi-stage tax structure that allows for input tax credit at each stage of the supply chain.
GST rates vary depending on the type of goods or services being supplied.
For example, the GST rate on essential items like food grains is lower than that on luxury items like cars.
GST has simplified the tax structure and reduced the tax burden on businesses.
It has also made it easier for businesses to operate across state borders.
Overall, GST has been a significant reform in the Indian tax system.

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