what is goods and service (GST) tax, a detail information about GST

"Two Things A Human Cannot Get Away With, One Is Death And Second Is Tax"

yes, you heard right...
you might be thinking,
Oh no no no !!
I don't...
maybe my dad pay taxes but I don't, I do not earn that much money, or I'm just student...

but listen, my friend, every person in this country pays taxes for everything he/she buys.
it doesn't matter if you buy a movie ticket or you buy a burger. 

you will have to pay tax,
most of the time it's hidden so you don't see it, but you do pay taxes, everyone does...
so let's understand

what is tax?

tax is a small amount of money that every person pays, when you buy anything a small fee is automatically added,
this is compulsory for everyone, this money goes to the government and then they use this money for the growth of our beloved country.

so in short,

"Tax is a short amount of money that you pay to the government for the country."

okay Now,

What the heck is goods and service tax aka GST?

As you all know GST, also known as goods and service tax, Is a kind of tax applied on sale, manufacturing, and usage of goods and services.

but this definition of GST is kinda Rigorous, I'm quite sure many of you don't understand what is goods and services so first,
let me explain what is goods and services.


According to Wikipedia:
Goods are items that are usually tangible, such as pens, salt, apples, and hats. Services are activities provided by other people, who include doctors, lawn care workers, dentists, barbers, waiters, or online servers, a book, a digital video game or a movie.


So in simple terms goods meaning anything physical  object
for example- food, drinks, etc.

And services meaning values that we give to others or take from others
for example- teaching, doctors, etc.

When was gst implemented in India?

GST bill was passed in loksabha on 1 July 2017.
By our financial minister Arun Jaitley.

[GST will remove all those previous taxes we used to pay earlier]

Before the implementation of GST, we used to pay mainly three types of taxes

There are mainly two types of taxes

1. direct tax
2. indirect tax

As you can guess from the name itself

in Direct tax, we pay these taxes directly to the government
these are some taxes that come under direct tax is...

Income Tax
Capital Gains Tax
Securities Transaction Tax
Prerequisite tax
corporate tax

As again,  you can guess from the name itself
in indirect tax,

tax go through the merchants and
we do not pay these taxes directly to the government but

 first, indirect tax is collected by an intermediary (such as a retail store)
and then it goes to the government

so thus we pay this tax indirectly to the government.

why do we need to pay taxes?

you might think why do we need to pay taxes I mean it's our money right, why should we even give 1% of our hard earned money to the government.

why??

 well, our country is like a giant house and we are the members of this house,
so it's our duty to take care of our home otherwise, our house will collapse if we start being selfish, so what the government do is, they take a small penny from everyone's pocket, and use that money for the growth of our country and our economy ie our giant house,

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Tax's main motto is to take a small percentage of fee from it's country's people to improve the country's economic growth.

Understand GST with a simple example:

if you still did not understand what is gst,
then understand G with this simple example:

history of GST in India

Here is why not knowing GST can cost you big money

earlier(before the implementation of GST) we used to pay several types of taxes




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