Full Form of GST:
Goods and Services Tax
GST Full Form is Goods and Services Tax. GST is basically is a proposed indirect taxation system in India. This system merges the majority of the current taxes into a single taxation system. The GST would be an indirect tax that will completely cover consumption of services and goods and their sales and manufacture all over India. It will replace those taxes that are taken by the state and central governments. The charging and collection of the GST at each step of the purchase or sale of services and goods would be done on the basis of the input tax credit method.
This way, the businesses registered with the GST can claim the tax incentive to the GST’s value that they paid while purchasing the services and goods as part of their daily commercial activities. There is no difference made between different taxable services and goods. Each of them will have a single rate tax till they reach the intended customer. A single authority would be given the administrative responsibility of levying the tax on services. No tax would be taken on exported goods, and the imports would be charged the taxes that are same as that on domestic services and goods.
Introducing the GST in India may prove to be an important step in reforming the indirect taxation system. Double taxation would mitigate by combining several state taxes and central taxes into a single one. This would also facilitate a common market in the nation. Since the tax would be quite simple, no severe problem would arise in its enforcement and administration. The biggest benefit from the consumer’s viewpoint would be a reduction in the burden of the total tax on goods, decrease in paperwork, and free goods’ movement between different states without needing to stop at state borders to pay the entry tax or state tax.