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Gst is indirect sales tax on goods and services. Indian gst is modelled after Canadian gst/hst if you know that.
by 2Gkashmiri 3y ago
Gst is indirect sales tax on goods and services.
Indian gst is modelled after Canadian gst/hst if you know that.
- detourdog 3y agoI think I know it as simply sales tax and some USA states have it and some don't. Thank you.
- ska 3y agoIt's not a sales tax, it's similar to a VAT but doesn't just compound. So I suspect that if you are manufacturer, you pay it on your raw materials, you collect it on your finished goods, and there is a credit system in place so it effectively passes through.
- detourdog 3y agoThank you for the clarification. Is it used to keep manufacturers from wasting materials?
- ska 3y agoSorry for late reply. It's more complicated than that, most countries (there are lots with GST) who implement it have replaced something existing for manufacturers etc. Usual justifications are 1) avoid cascading (you pay tax on the tax that was charged you for inputs) that makes things more expensive with more steps 2) simplify the whole system 3) make it easier for exporters to compete globally (e.g. because you can zero out the tax if govt chooses to allow)