BANKING AFFAIRS

Detailed explanation-1: -GST is referred as Goods and Services Tax. It is an indirect tax that was implemented to replace a variety of previous indirect taxes, including the value-added tax, service tax, purchase tax, excise duty, and others. GST is a tax that India imposes on the supply of specific products and services.

Detailed explanation-2: -GST, also known as Goods and Services Tax, has subsumed all indirect taxes in India such as sales tax, VAT, customs duty, service tax and excise duty.

Detailed explanation-3: -The introduction of GST, short for Goods and Services Tax, has overshadowed the indirect taxation system such as VAT, excise duty and service tax in India. The primary reason behind this is the elimination of the cascading effect of taxes on the economy.

Detailed explanation-4: -Central Taxes GST has replaced central excise duty, service tax and additional duties of excise (goods of special importance), to name a few. One of the primary objectives is to eliminate the cascading effects of tax.

Detailed explanation-5: -Value Added Tax is a system of tax levied at every stage of production of a product-from manufacturing to wholesaler to retailer to customer. How is VAT different from Sales Tax? While a Sales Tax is paid only by the customer, a VAT is paid by all strata of a supply chain.