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Costing and Taxation · Class 12 Commerce

Ch 7Goods and Service Tax (GST) — Class 12 Costing and Taxation, concept-first.

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax levied on the supply of goods and services, right from the manufacturer/service-provider up to the final consumer.

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Key concepts

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Concept, Background and Objectives of GST

GST is a comprehensive, multi-stage, destination-based indirect tax on the supply of goods and services, levied at every stage of the supply chain but, through input tax credit, ultimately borne only once by the final co…

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Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

7.i

Concept and Historical Background of GST

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based indirect tax levied on the supply of goods and services, right from the manufacturer/service-provider up to the final co…

7.ii

Pre-GST and Post-GST Indirect Tax Structure; Objectives of GST

Before 1 July 2017, India's indirect taxes were fragmented across the Centre and the States, each levying its own separate taxes with its own separate rules, returns, and rates:

7.iii

Structure and Types of GST

India adopted a Dual GST model, reflecting the country's federal structure — both the Centre and the States/Union Territories simultaneously levy GST on the same taxable supply, rather than one level…

7.iv

Salient Features and Benefits of GST

1. Destination-based consumption tax — revenue accrues to the State of consumption, not the State of production (Section 7.i). 2.

7.v

GST on Goods vs Services; GSTIN and GSTN

GST applies a single unified law to the "supply" of both goods and services, but a few rules differ in their detail between the two, reflecting the practical difference between a physical item that ca…

Terms Introduced in the Chapter

This section collects, in one place, every term introduced in this chapter, for quick reference and revision.

More questions

9 Q
+Show 1 question1 question
  1. Q9Explain briefly why GST is described as a 'destination-based' tax, as distinguished from the 'origin-based' character of some pre-GST taxes…Preview
+Show 8 questions8 questions
  1. Q1What is Goods and Services Tax (GST)? State the date from which it came into effect in India and the Constitutional Amendment that enabled i…Free
  2. Q2Distinguish between the pre-GST and the post-GST indirect tax structure in India, naming at least three taxes that existed before GST and we…Free
  3. Q3State any four objectives that GST was designed to achieve.Free
  4. Q4Explain the 'Dual GST' structure adopted in India. Distinguish between CGST, SGST/UTGST, and IGST, stating when each applies.Preview
  5. Q5State any four salient features of GST.Preview
  6. Q6Explain any three benefits of GST to (a) business and industry, (b) the Central and State Governments, and (c) the final consumer.Preview
  7. Q7What is GSTIN? Explain its 15-character structure.Preview
  8. Q8What is GSTN? Explain its role in the GST system, and distinguish it clearly from GSTIN.Preview