Here’s Everything You Need to Know About GST

The much-awaited Goods and Services Tax (GST) was finally rolled out on July 1, 2017. It has replaced the previous complicated tax system that was hindered by a cascading effect and is expected to give a boost to the economy in the long run.

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The following are some of the most important things you need to know about the GST regime:

• Goods and Service Tax is an indirect tax that subsumes several taxes such as VAT, sales tax, service tax, etc.
• Input Tax Credit in GST allows the traders and manufacturers to claim a portion of the tax paid by them and get a refund. Thus, they can pass on the benefit to their customers by reducing the prices on the goods/services.
• Under the GST regime, goods and services will be considered equally unlike the older regime in which services were charged a service tax and goods a Value Added Tax (VAT). So, there won’t be any confusion regarding the allocation of the category under GST.