Facts About Business and Accounting

GST or Goods and Service Tax are considered as a multi step tax that is imposed on all the levels of product on value addition.  Since a product undergoes multiple steps from the collection of raw material to the final product, and this GST will be imposed on all levels of the product formations. When a raw material undergoes a process it will add some value at each step to convert into a final product, the GST will be imposed on all the steps of value addition. In Indian Tax system there are two types of taxes viz. direct tax and indirect tax. Direct taxes are those that are to be paid by the person n whom it is imposed like the tax paid by all earning common man. And the indirect tax is one that is imposed on someone and is paid by someone else. A form of indirect tax is VAT, which is originally imposed on the shopkeeper it has been transferred by him on the customers. At this point GST favors the common man. The GST is an ultimate solution for the reduction of