Understanding GST: Promoting Fairness and Efficiency in Taxation

GST, a broad-reaching indirect tax, is applicable to goods and services throughout their journey from production to consumption. Operating as a destination-based tax, it places the onus of payment on the ultimate consumer. The tax is imposed based on the value added at every stage of production or distribution, guaranteeing that taxation occurs solely on the incremental value. This approach fosters equity and effectiveness, lessening the tax load for consumers and simplifying tax procedures for businesses along the entire supply chain. Consequently, GST plays a pivotal role in promoting economic transparency and growth by ensuring a fair and efficient tax system.