Goods and Services Tax (GST)

Goods and Services Tax (GST) – Goods and Services Tax (GST) is a comprehensive indirect tax imposed on the supply of goods and services throughout India. It was introduced to unify multiple indirect taxes such as VAT, excise duty, and service tax into a single taxation system, simplifying compliance and improving transparency. GST is collected at each stage of the supply chain, from manufacturer to retailer, but the final tax burden falls on the end consumer. Businesses can claim Input Tax Credit (ITC) on the GST paid for inputs, reducing the cascading effect of taxes.

Example: A manufacturer earning income in FY 2022–23 collects and pays GST on sales during the same year. The related filings and assessments are conducted in the Assessment Year (AY) 2023–24