What is GST? Explain the advantages and disadvantages?

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GST stands for Goods and Services Tax, a unified tax system in India. It has advantages like simplifying tax structure and disadvantages like increased compliance burden.

Advantages of GST include simplifying tax structure by replacing multiple taxes with a single tax, reducing tax evasion, promoting ease of doing business, and eliminating cascading effect of taxes.
Disadvantages of GST include increased compliance burden for businesses, especially small and medium enterprises, potential inflation due to higher tax rates on certain goods and services, and complexities in implementation and compliance.
Example: Under GST, a product like a smartphone is taxed at a single rate across the country, eliminating the need for multiple state-specific taxes.
Example: However, small businesses may struggle with the increased compliance requirements of filing multiple returns and maintaining detailed records for GST.

What is GST? Explain the advantages and disadvantages?

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