The full form of GST is Goods and Services Tax.
What is GST?
Goods and Services Tax (GST) is an initiative by Indian Government to reduce the complexity of Indirect taxes and to combine all indirect taxes into the one tax.
There are different GST slab rates for different kinds of Goods and Services. These GST slab rates are revised and maintained by GST Council.
What is Direct Tax?
Direct Tax is the tax that directly paid by the individual to the government. Mostly this tax is based on the income earned by the individual.
There are multiple types of Direct Taxes in India, they are
- Income Tax
- Wealth Tax
- Estate Tax
- Corporate Tax
- Capital Gains Tax
What is Indirect Tax?
Indirect Tax is the tax that is imposed on sale of goods or services. Indirect tax doesn’t depends on income earned by the individual.
There are multiple types of Indirect Taxes on Goods and Services in India before implementation of GST. They are
- Service Tax
- Value Added Tax (VAT)
- Excise Duty
- Custom Duty
- Entertainment Tax
- Stamp Duty
- Securities Transaction Tax
Below video will give you an overview on
- What is GST?
- What are GST components?
- How GST simplified complex indirect tax?
- How GST is exempting recurring tax (tax on tax)?
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