GENERAL KNOWLEDGE

Detailed explanation-1: -What is VAT? VAT is a multi-stage tax levied at each stage of the value addition chain, with a provision to allow input tax credit (ITC) on tax paid at an earlier stage, which can be appropriated against the VAT liability on subsequent sale.

Detailed explanation-2: -VAT is a multi-stage tax that is levied at each step of production of goods and services which involves sale/purchase. Any person earning an annual turnover of more than Rs. 5 lakh by supplying goods and services is liable to register for VAT payment.

Detailed explanation-3: -Multi-stage taxation A product goes through multiple stages before it is consumed by the end-user. These stages are similar to those of a supply chain. For instance, the supply chain of a product involves the following stages: Purchase of raw materials.

Detailed explanation-4: -Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country. Under the GST regime, the tax is levied at every point of sale.