CONCEPT OF GST

The concept of GST is basically a value-added tax that is levied on the manufacture, sale, and consumption of goods and services. this GST offers something known as a comprehensive and continuous chain of tax credits from producers or service providers spined but to retailers or say consumer level and here the taxation is happening Swanley on the value-added tax at each stage in GST supplier in each stage they can away from the credit of a GST they have paid on the purchase of goods and services.

It means they will be purchasing goods or they will be available services they will be playing GST. so whatever they have paid it to their supplier that can be set off against the GST payable by them because they have collected GST from a customer when they have supplied goods and services.


So what it ensures is it is only the final consumer who is going to back the GST change to from his last supplier and the other is the one leading conduits. they collect GST.


They will remit to the government but if they have already limited to the government with their purchased goods or services then set off is available this is what we call a continuous chain of tax credits.


GST is basically levied on the value that is added at each stage.this ensures there is no tax on tax or there is no cascading of taxes but GST does not differentiate goods and services. They are taxed that a single rate, of course, there is the difference in rates.you will see then gradually.