What Is the Goods and Services Tax (GST)?

What Is the Goods and Services Tax (GST)?

The goods and services tax (GST) is an indirect sales tax that is applied to the cost of certain goods and services. The business adds the GST to the price of the product, and a customer who buys the product pays the sales price plus the GST. The GST portion is collected by the business or seller and forwarded to the government. It is also referred to as Value-Added Tax (VAT) in some countries.                                                           

KEY TAKEAWAYS
  1. The goods and services tax (GST) is a tax on goods and services sold domestically for consumption.
  2. The tax is included in the final price and paid by consumers at point of sale and passed to the government by the seller.
  3. The GST is a common tax used by the majority of countries globally.
  4. The GST is usually taxed as a single rate across a nation.


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