Full form of GST is Goods and services taxes. It is levied on the production, supply, transfer or leasing of goods and on rendering of services. GST was first introduced in France in 1954, followed by- Russia in 1991 and China in 1994. In India GST law was implemented on 1st July 2017. It is considered to be a revolutionary step taken by the Indian government in the history of indirect tax reforms. GST subsumed 17 indirect taxes namely – VAT, Excise, Customs duty, Octroi, Luxury Tax, Entertainment Tax etc., which ultimately helped in removing the cascading effect of taxes.
GST is also termed as One Nation One Tax, which removed the barriers of inter-state transactions having a uniform tax structure across nation. Our nation, India, has its own unique beauty of many states having it is own unique culture and language. Therefore, the word GST can be explained and written in various Indian languages. Let’s consider a few examples: GST in Hindi is written as वस्तु एवं सेवा कर, in Gujarathi as સામાન અને સેવાઓ કર, and Punjabi as ਗੁਡਸ ਐਂਡ ਸਰਵਿਸਿਜ਼ ਟੈਕਸ (Refer to the table below for translations of GST in other Indian languages)
GST Meaning Explained
|English||Goods and Services Tax|
|Arabic||ضريبة السلع والخدمات|
|Hindi||वस्तु एवं सेवा कर|
|Bengali||পণ্য ও পরিষেবা কর|
|Gujarathi||સામાન અને સેવાઓ કર|
|Kannada||ಸರಕು ಮತ್ತು ಸೇವೆಗಳ ತೆರಿಗೆ|
|Punjabi||ਗੁਡਸ ਐਂਡ ਸਰਵਿਸਿਜ਼ ਟੈਕਸ|
|Sindhi||سامان ۽ خدمتون ٽيڪس|
|Tamil||பொருட்கள் மற்றும் சேவைகள் வரி|
|Telugu||వస్తువులు మరియు సేవల పన్ను|
|Urdu||سامان اور خدمات ٹیکس|
|Malayalam||വസ്തുക്കളും സേവന നികുതിയും|
|Nepali||सामान र सेवा कर|
|Marathi||वस्तू आणि सेवा कर|
As, GST has replaced several taxes, the tax slabs vary. The tax slabs under GST regime are- 0%, 5%, 12%, 18% and 28% levied as per the different categories of products.
Unlike other countries, there are different types of GST applied in India. Like Canada, India has also adopted a Dual GST model that is CGST and SGST, where both central and state government would collect taxes on the transactions taking place within the state and on inter-state supplies central government would collect IGST.
For example, a supplier from Mumbai selling his goods and services within Maharashtra (termed as an Intra-state supply) would levy CGST and SGST on such transactions and if he is supplying it to any other state in India, IGST will be applicable.
The implementation of GST, with its many complexities and procedures can take your attention away from doing your business. So, consult the GST experts at earlyGST at H&R Block India to take care of all your GST needs from registration to filing, so that you can focus your energy on growing your business.