Bank Theory

Goods & Services Tax | Bank Theory Goods & Services Tax (GST) and Taxation Concepts Meaning of Direct and Indirect Tax Taxes are the primary source of revenue for the government. Taxes are broadly categorized into: Direct Tax: Paid directly by individuals or organizations to the government. Examples include Income Tax and Corporate Tax. Indirect Tax: Collected by intermediaries (like retailers) from the consumer. Examples include GST, customs duty, and excise duty. Example: Mr. A pays ₹50,000 as income tax – this is a Direct Tax. He also pays ₹180 GST on a shirt – this is an Indirect Tax. Introduction to GST GST (Goods and Services Tax) is a comprehensive indirect tax levied on the manufacture, sale, and consumption of goods and services across India. Introduced on 1st July 2017 , GST subsumes various central and state taxes like VAT, Service Tax, Ex...