What is goods and sales tax?

Expert Solution

Ans: Goods and Sales Tax is an indirect Federal Tax that is charged on Cost of Goods and Services, basically it is another name for Goods and Services Tax, in Past years there are different taxes which is charged on Goods taxation after GST came , All indirect taxes i.e. Central tax, service tax, excise duty, value added tax are replaced with one tax i.e. Goods and Services Tax.

There are three main components of Goods and Sales Tax i.e. CGST,SGST and IGST

If a person supplies Goods with in One State that will be called as local Sales and On it We Charged CGST and SGST and if a person supplies good outside one State then it will be called as IGST , IGST means Integrated Services Tax, While CGST means Central Goods and Services Taxes, SGST means State Goods and Services Tax

Many countries Started Adopted this tax structure in its economy as It is very easy and simple tax and its moto is one nation, one tax , France is the first Country to launch the GST and in year 1954 it adopted the tax system.

ekkarill92 answered 1 year ago

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