All indirect taxes are collected by the Indian government and this indirect tax is not levied on any person’s income. This indirect tax is levied on the purchase of any goods or service, which remain attached to the MRP price of that goods. What is The Indirect Tax and GST Our Indian Government categorized the tax in two-part first is Direct tax and the second is Indirect Tax.
What is The Indirect Tax and GST
Direct tax effect and charge in an individual income, capital gain, Profits and more but Indirect tax effect and charge in a person’s expenses or any service. Earlier, an indirect tax meant paying more than the real cost of a product bought or a service acquired. If we talk about indirect tax there are some popular examples of indirect tax.
Indirect taxes that were earlier imposed in India:
- Service Tax – Apply for the services provided by a company. This service tax adds to the recipient and is collected by the central government of India.
- Excise duty – Applicable on the goods and manufactured in India, This tax is paid by the manufacturer and it is recovered from the customer.
- Customs Duty – It is an import duty charged on goods coming from other countries, and ultimately recovered by Customers and retailers.
- Value Added Tax (VAT) – Value Added service tax also known as VAT. This tax is levied on goods which are movable goods sold directly to the customer.
- Sales Tax – This tax was paid by the retailer, the retailer shifts their tax burden to the consumers by charging sales tax on service and goods.
- Entertainment tax – Levied on entertainment such as movie shows, arcades, video games, amusement parks, and sports activities.
In India, there are many various types of taxes Applicable on Goods, Service, manufacturer, and export, import duty.
GST: Merge all Indirect Taxes
1 July 2017, Goods and service tax (GST) was implemented in the place of all Indirect taxes in India. As there are many various types of indirect taxes charged on the expenses sustained by a buyer, our government has made a simple effortless tax system and merge all indirect taxes into one common Indirect tax is Goods and Service Tax (GST). What is The Indirect Tax and GST
GST is divided into four major parts:
- State Goods and Service Tax (SGST)
- Central Goods and Service Tax (CGST)
- Integrated Goods and Services Tax (IGST)
- Union Territory Goods and Services Tax (UGST).
GST Council levies different tax rates which are as follows, 0%, 5%, 12%, 18%, and last 28% for different services and goods. After GST was implemented in the Indian Tax system it improved day by day. Merging all Indirect taxes in one making it simple and easy, this is why the taxpayer has faced fewer problems in paying tax. What is The Indirect Tax and GST If you also have a problem related to paying Indirect taxes or Direct Tax and know about more GST then go to the Taxkundali. We are the best tax consultant and Top Chartered Accountant Company in Jaipur, Rajasthan. Taxkundali gives you the best possible advice for you and your business