GST Full Form: All you need to Know: Do you want to know what is the full form of GST, so keep reading this post. Right now you will get to hear about GST everywhere, you can hear the name of GST everywhere, but many people do not know what is the full form of GST, so I am going to tell you this in detail in this post that GST Full Form. Before moving forward, I would like to tell you that GST is a very good initiative, it will make many things cheap and some expensive too. Now let’s know what is GST Full Form is along with some important information related to GST.
GST has been implemented from 1st July 2017. Our former Prime Minister Atal Bihari Vajpayee was going to implement GST in India, but due to some reason, it could not be implemented. GST is a very good decision by the Government of India but I would like to tell for your information that more than half of all countries have adopted GST.
Currently, direct and indirect taxes double or triple the price of a product from production to our hands. While buying any goods, we pay 30-35 percent as a tax on it. Somewhere it is up to 50 percent. After the implementation of GST, this tax will come down to 28 or 18 percent or less.
GST Full Form: What is the full form of GST?
The GST full form is Goods & Services Tax, under which only one tax will have to be paid on all the services. You all know that whenever we buy an item from the market, many types of taxes are collected from us, all of you will be surprised to know that their number is around 20.
After the implementation of GST, the price of every item will be the same across the country. You must have also seen many times that some goods are cheap in some states and expensive in some states because many types of taxes are charged on that item.
If all the taxes will come under GST, then the price of all will be the same i.e. GST tax is in the interest of the common man. After the implementation of GST, all taxes such as VAT, entertainment tax, luxury tax, lottery tax, entry tax, octroi, etc. will also be abolished by the states.
For your information, I would like to tell you that many countries have adopted GST so far, that is, only one tax is levied in these countries, but the rate of GST is different in every country such as 15 percent in New Zealand, 10 percent in Australia, GST is applicable at the rate of 19.6 percent in France, 19 percent in Germany, 25 percent in Sweden and Denmark and 18 percent in Pakistan.
Impact of GST on the Indian economy
- GST will eliminate all taxes, only one tax will remain, it will be GST itself, till now you used to pay 20 different taxes on whatever item you used to buy, but now only GST tax will have to be paid.
- With the implementation of GST, you will get exemption from the tax levied by the central and state governments, in this way 20 different types of indirect taxes will not be charged.
- Some experts believe that with the implementation of GST, GDP growth will increase by 1-2 percent.
- All taxes like Service Tax, Central Sales Tax, State Sales Tax and VAT will be abolished. After the introduction of GST, the tax structure will be simplified and the manufacturing sector will save both money and time.
- At present, with direct and indirect taxes, the price of a product doubles or triples from the time it reaches our hands. While buying any goods, we pay 30-35 percent as the tax on it. Somewhere it is up to 50 percent. After the implementation of GST, this tax will come down to less percent.
Three types of taxes will be included in GST, so let’s know them too
- CGST (CGST Full Form: Central Goods & Services Tax): It will be collected by the central government.
- SGST (SGST Full Form: State Goods & Services Tax): It will be collected by the state government.
- IGST (IGST Full Form: Integrated Goods & Services Tax): This tax will be levied on the business between two states and it will be divided equally between both the states.
Now let us understand this with an example, suppose if a person from Bihar sells goods to a person from Bihar and the GST rate on that item is 18 percent, then 9 percent CGST and 9 percent SGST will be applicable. If the goods are sold outside the state, then 18 percent IGST tax will be levied.
Some important information related to GST
- Due to the implementation of GST, inflation days may have to be seen for a few years.
- Packaged food product does not attract any duty in most states, where it is applicable, its rate is 6-7 percent, but after GST, they will also have to pay 18 percent tax.
- Till now, 3 percent duty was levied on jewelry and 4 to 5 percent state VAT on readymade garments, but after the introduction of GST, these will also attract 18 percent tax, due to which jewelry and garments will become costlier.
- After the arrival of GST, the discount will also become expensive because till now the price left after the discount was taxed but now MRP will be taxed.
- Till now you had to pay 15 percent tax on the mobile bill but now this tax has increased to 18 percent for example if you recharge your phone with Rs 100 then you will get Talktime only Rs 82 whereas earlier you will get Talktime Rs. Got 85.
- Buying a house will become cheaper because till now we used to pay both service tax and VAT on buying a house, but now only one type of tax will have to be paid under GST.
- Cars and Compact SUVs used to be taxed at 30 to 44 percent till now but now it will only be 18 percent, due to which buying a car will become cheaper.
- Eating food in restaurants will also become cheaper because till now the rate of VAT was different in different states, above you also had to pay service tax but now only one kind of tax will have to be paid under GST.
- AC, washing machine, fridge have been kept in the 28 percent tax bracket. At present, 30-31 percent tax is levied on them. The cost of AC and fridge will be less.
- Air travel in economy class will become cheaper with GST. One percent less tax will be charged for economy class at 5 percent but traveling in business class will be expensive. With the implementation of GST, the tax on business class tickets will increase from 9 to 12 percent.
Note: This post is only for informational purposes. Maybe Some data is changed by time or wrong. In this case, We are not responsible. So For better Knowledge of the GST. Please Visit the Government Official Websites.