what is GST and explain the same.

Question

Accepted Answer

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

GST is a consumption tax that is collected on the value added to goods and services at each stage of the supply chain.
It replaced multiple indirect taxes in India and aims to simplify the tax structure and reduce tax evasion.
GST has multiple tax slabs ranging from 0% to 28%, with different rates for different goods and services.
Input tax credit can be claimed on GST paid on inputs, which helps in reducing the overall tax burden on businesses.
Example: If a manufacturer sells a product for $100 with a GST rate of 18%, the final price to the consumer would be $118.
Example: GST has different rates for essential items like food grains (0%) and luxury items like cars (28%).

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