GST Full Form And Meaning

What is the full form of GST?

The full form of GST is Goods and Services Tax.

What is GST?

GST is an indirect tax implemented in India to replace various indirect taxes, including value-added tax (VAT), service tax, and excise duty.

The two main categories of taxes are direct tax and indirect tax.

Direct Tax

A direct tax levies an assessee’s income (individual, company, firm, HUF, or any other person).

Indirect Tax

Indirect tax is not levied directly on individuals’ earnings. Instead, it is levied on products and services traded, raising the cost or MRP of those goods and services.

In contrast to direct taxes, indirect taxes should be borne by the end user, with rich and poor treated equally.

There are numerous types of indirect taxes. However, GST replaced the innumerable indirect taxes the Indian State and Central Governments levied, simplifying the indirect taxation system.

Categories of GST

The GST, meaning “Goods and Service Tax”, has three different taxes:

• The Central GST [CGST] is the GST that the Centre will levy on intra-state businesses.
• State GST [SGST] is the state-imposed tax on inter-state businesses.
• The Integrated GST [IGST] is the GST that the Centre will levy on interstate commerce and imports.

Commodities Exempt From GST

Here is a list of items not subjected to GST.

1. Fish Fillets
2. Animals that are alive
3. Meat
4. Trees and living plants
5. Alcohol
6. Fertilisers
7. Coffee and Tea
8. Spices
9. Dry fruits
10. Vegetables
11. Edible grain
12. Instruments for music and industry
13. Pharmaceuticals and medications
14. Claws and hooves

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