BASIC STRUCTURE OF GST, IGST, SGST, UTGST & CGST
18 Pages Posted: 11 Feb 2022
Date Written: November 15, 2021
GST is one indirect tax for the whole nation, which will make India one unified common market. The GST intends to subsume most indirect taxes under a single taxation regime. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stages of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. This is expected to help broaden the tax base, increase tax compliance, and reduce economic distortions caused by inter-state variations in taxes.
Keywords: Indirect Tax, GST, CGST, SGST, UTGST, IGST
JEL Classification: H20, H23, H25, H71, K34
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