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The full form of GST is Goods and Services Tax

GST Full Form & GST Meaning explained in englishWhat is GST and what are its types?

GST was introduced in 2017 by the Government of India and is a single tax levied on the supply of most goods and services. This tax is paid by the consumers but is collected by the government from the suppliers of these goods and services. 

In the previous tax system, we had to pay taxes at multiple tax points and sometimes also pay tax on taxes as the goods and services travel through the consumer chain. GST solved all these problems by bringing together all these taxes bringing efficiency in tax administration. 

Also read: What is the full form of IMPS?

What are the types of GST?

  1. Central GST (CGST)-GST levied from any transaction is divided into two parts, the part of Centre’s is called CGST

  2. State GST (SGST)- The  share of GST when the transaction happens inside the state

  3. Union Territory GST (UTGST)- The share of GST Union Territory without a legislature gets when the cash flow takes place inside UT

  4. Integrated GST (IGST)- The share of GST taken by States, Union Territory, foreign territory get when the transaction takes place between-

  • Two states or Union Territories

  • State-Union Territory 

  • State-Foreign Territory

Advantages/Benefits of GST:

  • Eliminates levying tax at multiple points

  • A seamless way to pay taxes and allows centralised registration

  • Small business and unorganized business are made accountable 

  • Reduction in corruption and illegal tax impositions

  • Optimized logistics transportation

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