What is GST

#GST is one #indirect #tax for the whole nation, which will make India one unified common market. GST is a #singletax on the #supply of #goods and #services, right from the #manufacturer to the #consumer. #Credits of #inputtaxes paid at each stage will be available in the subsequent stage of #valueaddition, 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. Keeping in mind the #federal #structure of India, there will be two components of GST – Central GST (#CGST) and State GST (#SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be #levied on every supply of goods and services.

Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The #inputtax credit of CGST would be available for #discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.