GST Full Form & GST Meaning In Various Languages

GST Full Form

• VAT -

  Vat was an indirect tax introduced to replace general sales tax in India in 2005. Under Vat regime tax was levied on value addition at each stage of production and distribution before reaching the final consumer.

• Sales Tax -

  Sales tax is a tax imposed on the sale and purchase of goods within the state. Each state has its own sales tax law. Sales tax is charged at the levels of Legislation, Central and State.

• Service Tax -

  Service tax in India used to be a type of indirect tax charged on the services provided by a service provider. The Place of Provision Rules 2012 and the Point of Taxation Rules 2011 were considered while determining the tax liability.

• Entertainment Tax -

  It used to be levied on various forms of commercial entertainment such as movie tickets, exhibitions, sport events and more. It was a form of indirect tax, which is levied on the buyer.

• Octroi -

  Octroi was a tax levied by the local municipality in India when the product entered the state.

Direct Tax

Direct taxes in India are regulated by the Income Tax Act, 1961 and Wealth Tax Act, 1957. The Central Board of Direct Taxes (CBDT) administers direct taxation in India. Income tax is levied on the income of an individual, business entity, trusts, etc. Its levy and charge is governed by the Income Tax Act, 1961.

Why was GST introduced in India ?

Prior to the introduction of GST in India, Value Added Tax regime was in force in India. It suffered from many deficiencies such as

• Separate charge of several local levies in State VAT such as entertainment tax, luxury tax etc.
• Double taxation on account of Non-VATable CST and inclusion of CENVAT in the value on which VAT was imposed.
• Non integration of VAT & Service tax.
• Double taxation of a single transaction both as a good and a service.