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The full form of GST is Goods and Service Tax.
GST short for Goods and Service Tax. It is an indirect tax which is levied on the goods and services. It was introduced by the government of India from July 2017 with a motive to replace the existing complex indirect tax system which comprised of many taxes like sales tax, luxury tax, VAT, Central excise duty, etc.
GST is considered the biggest tax reform in the Indian economy. It is important for the Indian economy as it aims at removing all different types of indirect taxes which will remove the long existing problem of double taxation and will bring out a simplified tax structure throughout the nation. Also, it will bring all the state economies together as there will be only one tax which will lead to a unified market.
GST one of the biggest tax reform in India faces both praises and criticism but if we take a deep look with the proper understanding of the tax system we will see that GST is definitely a boon for India. If we look stepwise then, first of all, it removed near about 16 indirect taxes. After the implementation of GST, it has become an easy process to start and promote a business because of its simple tax regime. Also, the revenue collection increased as tax evasion became impossible. And foremost it united India under the label of "one tax one nation".
VAT stands for Value Added Tax while GST stands for Goods and Service. Both are indirect taxes but there are major differences in them. The VAT is applied only on goods while GST on both goods and services. The VAT is calculated at the market price of the good while GST is computed using the selling price.
France was the first country in the world that implemented GST. It was implanted in 1954.
The documents needed while you go for registration for GST are-
If it's a partnership firm then -
The most popular software for GST accounting in India is Tally ERP 9 followed by MARG GST, QuickBooks, Profit books and Busy GST.
Dual GST is a tax structure where GST is levied on two levels. In India, the GST is called dual GST because both central and state have the power to collect taxes as there are two branches Central Goods and Service Tax (CGST) collected by Central and State Goods and Service Tax (SGST) which is paid to the state. The CGST and SGST are applicable to all forms of transactions of goods and services.
As each coin two sides similarly GST has some flaws and drawbacks some of which are:
There is no registration fee charged while you register for GST. But there are some cases which require a digital signature and it may cost between 1000-1500.