S Bali & Co.- Chartered Accountants

Goods & Services Tax

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the entire country.

Let us consider the following case:

1. Purchase of raw materials

2. Production or manufacture

3. Warehousing of finished goods

4. Sale to wholesaler

5. Sale of the product to the retailer

6. Sale to the end consumer