Know all about GST | Fusion - WeRIndia

Know all about GST

Know all about GST

The Goods and Services Tax, or GST, has recently been released, and is said to revolutionize the entire economy of India. Yet many ask the question: why? What is so great about this one tax?

This is especially important to laymen, many of whom currently find it difficult to understand. It is also vital that customers understand the importance of the GST, since it reduces black money in the market and gives them much fairer prices.

In truth, the concept of the Goods and Services Tax or GST is simple, and does not need to be overanalyzed in order to comprehend it. Therefore, this is a straightforward explanation of the workings of the Goods and Services Tax.

The principle on which the Goods and Services Tax works will only tax the contribution of the vendor to the overall value of the product. The tax will also not be included in the price of the product for the next vendors, thus taking the burden off of many vendors, who used to be forced to pay higher and higher costs.

It also makes the end product much more affordable, thus also aiding the customers who buy them. The tax rate for a certain product will also be made universal throughout the country, in order to avoid anyone taking advantage of price changes.

When compared with the old, conventional system, the GST shows an equal, universal tax on all vendors that sell a product, thus reducing the end result tax on the customer.

This is in contrast to the conventional system, where the tax was heightened for each vendor, making the end result tax much higher. The price would also rise at an irregular rate, causing customers to pay much more for a product than it was actually worth.

Now, the rise in price is universal from vendor to vendor, and allows the customer to buy an item for its true value at all times.

Image credit: Image by Prasanta Sahoo from Pixabay  (Free for commercial use)

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