GST explained in simple words.

[ajaychavan15]

GST is a revolutionary step taken by The Government of India to make Indian economy stronger than before. On 1st July government of India announced a new way of tax payment which is GST which will make the process of tax collection simple as compared to the previous tax system. As GST is a newly introduced tax system in India, many people still are unaware of What is GST? Why is it good for Businesses? Why is it good for common man? There are a lot of speculations about its implementation, tax rate brackets etc, we will cover that too.
The full form of GST is Goods and Services Tax. GST is a simple, sophisticated and consumer-friendly way how the Government of India will collect the tax from the businesses and individual citizens. GST is implemented in India to replace the previous indirect tax systems which were very complex with a simpler, uniform tax system. In previous tax system, there were multiple confusing taxes like VAT(Value Added Tax), service tax, cess tax, entertainment tax, sales tax etc making it a very confusing tax system for consumer/ common man and even for the businesses. So now people and businesses have to pay only one type of Tax which is GST. GST is a consumption based tax which means the tax should be received by the state in which the goods or services are consumed and not by the state in which such goods are manufactured. The GST tax system will take the form of ?dual GST? which is concurrently levied by central and state government.

Source: Essay on GST-TeenAtheart.com