Understanding The Goods And Services Tax
Goods and services tax or GST is a destination-based tax, and the burden of tax falls on the end-user who Consumes the services or goods. The state where the goods and services are consumed receives the tax. A supplier who exports goods or services can either opt not to pay the tax under the LUT/Bond and can claim refund of accumulated ITC or can choose to pay the tax and claim refund of such taxes paid. Such export transactions are termed as ‘Zero rated supply of goods and services’ under GST . GST replaced many other taxes, such as the Central Excise, State VAT/CST, and Service Tax, Octroi, Entry Tax and WCT etc . GST is divided into CGST or central goods and services tax, SGST or state goods and services tax, and IGST or integrated goods and services tax. The type of transaction, whether it is interstate or intrastate, determines the type of GST that has to be paid. GST return compliance refers to compliances regarding filing the document containing details of income so that ta