ESSAY ON OBJECTIVES OF GST
GST is an abbreviation for Goods and Services Tax,
India. It is a uniform indirect tax, replacing various indirect taxes at
different stages, levied before by both central and state governments. GST
treats India as one big market following a uniform tax regime throughout the
country, irrespective of states.
Though GST is charged by all the registered dealers in
a supply chain (raw materials supplier, manufacturer, wholesaler, retailer,
consumer), from the next customer, the ultimate burden of the tax is on the end
customer i.e. the consumer. All the other dealers registered with GST act as
intermediaries collecting GST from the consumer and passing it onto the
government, getting tax credit in return. This tax credit is called “Input Tax
Credit” and is placed against the GST charged by the dealer to the customer, to
which he/she is supplying goods.
Any registered dealer is also eligible for tax refund
if the input tax credit exceeds the output tax credit, as according to the
provisions provided by law in this regard. Moreover, no GST credit could be
claimed for the purchase of exempted goods. The GST is not levied on all types
of vegetables, organic manure, contraceptives, printed books, stamp papers,
agricultural equipment's etc.
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