Question

Explain Goods and Services Tax (GST).

Answer 1

• GST is comprehensive indirect tax on manufacture, sale and consumption of goods and services.
• It replaced indirect taxes levied by union and state Governments.
• It is collected at each stage of sale or purchase of goods and services.
• It avoids double taxation.
• It is easier to administrate and enforce.
• It provides faster and free movement of goods and services, through less paper work.