VAT and GST

What is VAT?

Value Added Tax (VAT) is the consumption tax added to a product's sales price. It represents a tax on the vale added to the product throughout its process of production.

Benefits

The revenue generated will be constant.

Compared to other indirect tax, VAT is easy to manage.

What is GST

Goods and Services Tax (GST) is the tax that is applicable on the supply of both goods and services.

Benefits

GST is a transparent tax and also reduces the number of indirect tax.

Benefit people as prices will come down which in turn helps the companies as the consumption increases.

The primary difference between VAT and GST is that while VAT applies to the sale of goods, GST applies to the supply of goods and services.