Question

Write short note on 'Goods and Services Tax' in India.

Hint:

GST simplifies the taxation system and ensures uniform tax treatment across India.

Answer 1

Step 1: Define Goods and Services Tax (GST).
Goods and Services Tax (GST) is a single, comprehensive tax levied on the supply of goods and services. It replaced multiple indirect taxes in India, such as VAT, excise duty, and service tax.
Step 2: Key Features of GST.
- **Single Tax System:** GST simplifies the tax structure by replacing various central and state taxes. - **Dual GST Structure:** In India, GST is levied by both the central and state governments. - **Destination-based Tax:** GST is applied at the point of consumption, not the point of origin, ensuring that taxes are paid where the goods are consumed.
Step 3: Conclusion.
GST has been beneficial in promoting ease of doing business by reducing tax cascading and providing a transparent taxation system. Final Answer: \[ \boxed{\text{GST is a single, comprehensive tax on goods and services, replacing multiple taxes in India.}} \]