The goods and services tax (GST) is a kind of federal sales tax indirectly levied on certain products and services following the GST slab approved by the budget every year. When a product is bought or a service is hired, the seller adds the GST to the price of the product or service following the GST slab. The GST replaced several taxes on goods and services such as VAT, sales tax, etc., to prevent tax evasion.
India launched a dual GST system in 2017, which was one of the biggest reforms in the country. Integrating the GST was to eradicate tax on tax, or dual taxation, which cascades from the manufacturer level to the consumer level
Despite several advantages and disadvantages of GST in India, it has brought certain benefits. As per a report presented before Parliament in 2021, by the Controller and Auditor General of India, the anti-tax evasion actions have improved by 72% between the financial year 2018 to the financial year 2019.
The tax experts from Quick Company can help you in intelligent tax planning and assist you in accurate compliance with the GST regime.