GST stands for _______.

The correct answer is Goods & Services Tax.

Key Points

• Goods & Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
• GST is intended to bring uniformity in the tax structure by replacing various indirect taxes like VAT, service tax, and excise duty.
• Introduced in India on 1st July 2017, GST is governed by a GST Council comprising of the finance ministers of the central and all the state governments.
• The GST system in India is divided into three categories: Central GST (CGST), State GST (SGST), and Integrated GST (IGST).
• One of the significant benefits of GST is the elimination of the cascading effect of taxes which was prevalent in the previous indirect tax regime.

Additional Information

• Types of GST:
  • Central GST (CGST): Collected by the Central Government on intra-state sales.
  • State GST (SGST): Collected by the State Government on intra-state sales.
  • Integrated GST (IGST): Collected by the Central Government on inter-state sales and imports.
• GST Council:
  • A governing body formed to regulate and implement GST in India.
  • Consists of the Union Finance Minister, the Union Minister of State for Finance, and the Finance Ministers of the states.
  • Decisions in the council are made by a three-fourth majority.
• Input Tax Credit (ITC):
  • Mechanism under GST that allows businesses to claim credit for the taxes paid on the purchase of goods and services.
  • Ensures that there is no cascading effect of taxes and promotes seamless flow of credit.
• GST Network (GSTN):
  • A non-profit organization that manages the entire IT system of the GST portal.
  • Provides the technological infrastructure for GST implementation and administration in India.