GST is known as Goods and Services Tax. It is an indirect tax that has replaced many indirect taxes in India such as excise, VAT, service tax, etc. The GST Act was passed in Parliament on 29 March 2017 and came into force on 1 July 2017.
In other words, the Goods and Services Tax (GST) is levied on the supply of goods and services. The GST law in India is a comprehensive, multi-tiered, destination-based tax levied on every value addition. GST is a single domestic indirect tax law for the entire country.
What are the components of GST?
Three taxes are applicable under this system: CGST, SGST, and IGST.
CGST: It is a tax collected by the central government on an inter-state sale (for example, a transaction taking place within Maharashtra).
SGST: It is a tax collected by the state government on inter-state sales (for example, a transaction taking place in Maharashtra).
IGST: This is a tax collected by the central government for inter-state sales (eg, Maharashtra to Tamil Nadu).
To know more detailed information about GST as per your income contact one of the trusted chartered accountants of Chartered Munshi.