WHAT IS GST??

        Basically, GST is an Indirect Tax with many specialties. GST is like Comprehensive Tax, Multi-Stages Tax, Value Added Tax and the last one is Destination Based Tax.

Comprehensive Tax

        It means it's a combination of many different types of tax with the help of this type of tax we can calculate only one tax not many types of taxes and that's taxes are different in central government and states government.

        After applying GST in India Central Government has to take revert Central Excise Duty. But it doesn't mean that Central Excise Duty is not taken 100% revert. It means where GST is applicable at that point Central excise Duty is not applicable. That's why the government said that Central Government collects Central Excise Tax on Petroleum product, alcohol product, etc. Second is Service Tax is taken fully revert, Additional Customs Duty and Special Additional Customs Duty and additional Excise Duty also taken revert.

        And State Government has to take revert VAT. And it is the same as Central Excise Duty means VAT is not taken 100% revert. it means where GST is applicable at that point VAT is not applicable. That's why the government said that State Government collects VAT on petroleum products, alcohol products, Electricity, etc. The second is Entry Tax and Octroy Tax is taken fully revert. Entertainment Tax, Amusement Tax, Central Sales Tax and Gambling Tax and Advertisement Tax, etc.

Multi-Staged Tax

        Before GST we have to pay tax at many stages, But after applicable of GST, we don't need to pay tax at multi-stages. For example, 

        If person A purchase raw material for production, after production he sells the product to the wholesaler then the product goes to the retailer at last the product goes to the consumer or customer. Before GST we have to pay Cenvat (Central Excise Duty) on the production of the product and at other stages, we have to pay VAT. Where the product calculated Cenvat, on this Cenvat we calculate many time VAT in this VAT there is a cascading effect on Cenvat which is Calculated at production time. But after GST all taxes are taken revert by the government and calculated only one tax which is known as GST.

Value Added Tax

        Before GST we are using the Value Added Tax method. Meaning of Value Added Tax means tax is calculated on that amount which is added by the seller. (for reading more about Value Added Tax click here: VAT.)

Destination Based Tax

        In Destination Based Tax we see with the starting point of production then it will be converted in sales and sales converted into the consumptions. In this process, there is some tax which is calculated on the production like Excise Duty, as well as Sales Tax calculated on Sales and Entertainment or Amusement Tax is calculated at the time of consumptions. Before GST was implemented that taxes are calculated at many different levels so it is very important to find where GST is calculated then it is decided to be calculated on "Supply" and it is known as Destination Base Tax.

            For Example, if a person stays in Gujarat and purchase raw material from Gujarat and also produce the product in Gujarat. But after production, the demand for the product is coming from Tamil Nadu. The product sifted to Tamil Nadu with transport and the product came into retailer or wholesaler and he sold the product to the consumer. In this point, we see that the total collection of tax collected in Gujarat, But consumer of the product is from Tamil Nadu so the total tax also shifted to Tamil Nadu

            In Destination Base Tax means the consumption of the product and producers of the product is same then their state tax is collected by the same state. If there is the consumption of the production is different state and production of state is different that means at last point which state is consume the product that state get the benefit of State Tax.