Goods and Service Tax (GST)
Goods and Service Tax (GST) launched on 30th June from midnight. GST is the biggest tax reform in India and can be beneficial for the Indian Economy. According to the Govt. of India, the GST must help India to fight against corruption and black money. It is a ‘Good and Simple’ tool through which the people of every sector of India including the poor can get benefited. Goods and Services Tax (GST) is an indirect tax (or consumption tax) used in India on the supply of goods and services. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. .
Multi-staged as it is, the GST is imposed at every step in the production process but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax, it is collected from point of consumption and not point of origin like previous taxes.