Question

Explain breifly the term Goods and Services Tax.

Answer 1

• Goods and Services Tax (GST) is the tax imposed on the supply (consumption) of goods and services.
• Traders having annual turnover, within a state, below 20 lakhs are exempted from GST.
• GST Act was passed on April 12, 2017. GST came into effect from 1st July, 2017. It is the single biggest tax reform since Independence.
• Several Countries like Russia, Canada, Australia, Singapore, China, etc. have already introduced GST.