GST and Income Tax
It follows a consumption-based model, where tax is collect at each stage of the supply chain, from the manufacturer to the end consumer. GST replaces multiple indirect taxes such as excise duty, service tax, and VAT, with the objective of establishing a unified market throughout the country featuring standardized tax rates.
In contrast, income tax is a direct tax levy on the income of individuals, businesses, and other entities. It is calculate based on the earnings generated within a financial year, with tax rates varying according to income brackets. The revenue collected through income tax is utilized by the government to finance various public services and welfare programs.
In summary, while GST pertains to taxation on goods and services, income tax pertains to taxation on income.
FAQs:
What is GST?
GST is a value-added tax applied to the sale of goods and services, collected at each stage of the supply chain.
What is income tax?
Income tax is a tax on an individual’s or entity’s earnings or profits, calculated based on income received.
How is GST calculated?
GST is calculate as a percentage of the sale price of goods and services, typically collected by businesses from consumers.
How is income tax calculate?
Income tax is calculate base on taxable income, with rates varying by income level and tax brackets.
Who pays GST?
GST is pay by consumers, but businesses collect and remit the tax to the government.
Who pays income tax?
Income tax is pay directly by individuals or businesses on their earnings or profits.
GST applies to most goods and services, but certain items may be exempt or subject to reduced rates.
Is income tax applicable to all types of income?
Income tax applies to various types of income, including wages, salaries, dividends, and business profits.
Related Topics:
Is the GST on international transactions?
To visit:https://www.gst.gov.in/
