GST vs VAT in India

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What is GST?

GST stands for Goods and Services Tax and is a successor to VAT used in India on the supply of goods and services.

How is GST different from VAT?

GST is a digitalized form of VAT and allows tracking of goods and services. Both VAT and GST have the same taxation slabs.

What are the different tax slabs for goods and services under GST?

Goods and services are divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18%, and 28%.

Which items are not taxed under GST?

<p>Petroleum products, alcoholic drinks, and electricity are not taxed under GST and are taxed separately by the individual state governments.</p> Signup and view all the answers

What was the statutory tax rate for most goods before GST, and what is it expected to be post-GST?

<p>Pre-GST, the statutory tax rate for most goods was about 26.5%; post-GST, most goods are expected to be in the 18% tax range.</p> Signup and view all the answers