Full Form of GST: Meaning, Different types, History, Direct, Indirect Tax

 The government of every country needs a steady stream of revenue to enable the country to play its truest role, and taxation is the main source of this revenue. The taxes collected by the government are ultimately spent on the public of the country. There are two main types of taxes in India, namely direct taxes and indirect taxes. 

Direct tax is basically an income tax levied on a person’s income, which comes from various sources, such as house rent, wages, etc. Increase the global margin price of related goods or services. In India, this is called GST (Goods and Services Tax). It applies to the supply of goods and services in India.

What is GST

The full form of GST is goods and services tax, which is a destination-oriented multi-stage tax that applies to every added value. This is a relief for most people, because it completely replaces many indirect taxes that once worked, such as consumption tax, value-added tax, service tax, property tax and so on. With the introduction of goods and services taxes, 17 such taxes have been eliminated. 

Simplify government taxation procedures. GST is a consumer goods tax levied on people with annual turnover of Rs. More than 4 million. These people must be registered as ordinary taxpayers. This option is now open to all people buying goods and services across the country.

Meaning of Global GST

The full form of global GST is the global goods and services tax. There are several countries in the world that actively adopt the goods and services tax system. The first country to implement GST was France in 1954. Today, about 160 countries have adopted the GST idea. These include the United Kingdom, Canada, Australia, Vietnam, Singapore, Spain, Brazil, Italy, Nigeria and South Korea. 

Most countries call this value added tax (VAT). Globally, goods and services tax has been adopted as a unified taxation system. It can be concluded that tax rates are levied uniformly across the country on various goods and services. Consumption tax is the merger or unification of the central and state tax systems and is levied as a single tax.

This overcomes the overload problem under certain conditions, eliminates the chain effect of taxation, and improves public participation and confidence.

History of GST

CGST is levied on the supply of products and services within the state. The central government levies CGST and is regulated by the Central Goods and Services Tax Law. CGST has completely replaced all previous central taxes, such as central consumption tax, tariff, service tax, SAD, CST, etc. Taxpayers are required to pay SGST. The CGST fee rate is usually the same as the SGST fee rate, and the income collected under CGST is turned over to the central government. 

State Goods and Services Tax (SGST)

 The SGST is the same as the CGST mentioned above. Charge fees when selling products or services in a state. The state government is responsible for collecting SGST. This tax replaces all previous taxes, such as input tax, value-added tax, entertainment tax, state sales tax, taxes and surcharges. The income collected by SGST will be sent to the state government.

Integrated Goods and Services Tax (IGST)

 IGST applies to interstate transactions of goods and services. It also applies to imports. The central government receives IGST and distributes it among the states. If goods or services are transferred from one state to another, IGST applies. Taxation is mandatory, so the states only need to deal with the federal government, not with all states. 

Union Territory Goods and Services Tax (UTGST)

UTGST applies to products and services provided in any Union territory of the country, such as Andaman and Nicobar Islands, Dammam and Diu, Dadra and Nagar Haveli, Lakshadweep and Chandigarh. UTGST is charged together with CGST.

Meaning of GST in Different languages