Basic Terms of Indirect Tax

Basic Terms of  Indirect Tax

GST (Goods and Services Tax): It's a tax you pay when you buy goods or services. It replaced many other taxes, making the system simpler.

CGST (Central GST): A part of GST charged by the central government on things you buy within the same state.

SGST (State GST): Similar to CGST, but it's charged by the state government on items bought within the state.

IGST (Integrated GST): Charged by the central government on goods or services that move between different states.

Customs Duty: Tax paid on things you buy from or sell to other countries.

Excise Duty: Tax paid by manufacturers when they make goods inside India.

Service Tax: A tax you used to pay for certain services, but now it's part of GST.

VAT (Value Added Tax): A tax on goods sold within a state, now replaced by GST.

Cess: Extra tax on some items, used for specific purposes like education or healthcare.

Input Tax Credit (ITC): If you're a business, you can get credit for the taxes you paid on things you used to make your products or services. It reduces the final tax you owe.