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GST (Goods and services tax) and is referred to as indirect tax which replaces the host of other indirect tax defined as VAT (value-added tax).
Besides VAT this is also implied towards excise duty, service and purchase tax.
The tax is levied on the goods and services in India and even all over India. Now there is a need for you to know why does GST Services In India hold importance and how beneficial they can be?
But before that let us tell you how GST work?
There are different service providers where GST works differently. Now, this is where we need to know where do we fall and how it works?
For consumer
To those consumers, GST has to be paid on the product which is being purchased.
Retailers
Retailers will pay the GST on the product which is purchased from the distributors. Also to the margin which has generated.
Service provider
The service provider has to pay the amount for the product which is purchased plus the value-added.
Manufacturer
In the case of the manufacturer, they will have to pay the GST on the raw material which is purchased also to the value which is added to develop the product.
GST services in India was implemented in the year July 1 2017. Also, certain other tax laws were implemented before GST.
Here in this case the central and the state government used to collect the tax separately. In addition to this depending upon the state, there were also differences in the tax regime.
Also, the import tax was levied on one individual.
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