Taxation is the process by which a government levies taxes on individuals and businesses to generate revenue for its operations. GST and ITR are two of the most commonly used taxation tools for this purpose.
GST stands for Goods and Services Tax. It is a comprehensive indirect tax which is levied on the manufacture, sale, and consumption of goods and services. The GST is collected by the Central and State Governments and is used to finance government expenditure. GST is charged on all goods and services at different rates depending on the type of product or service. The GST has replaced the previous system of multiple indirect taxes such as the Value Added Tax (VAT), Service Tax.
ITR stands for Income Tax Return. This is the annual tax return filed by individuals or businesses to the Indian Government. It is used to report income and calculate the tax liability of the taxpayer. It is also used to declare any deductions or exemptions available to the taxpayer. ITRs are important documents that are used by the government to assess the financial position of the taxpayer and check for any discrepancies.
Taxation is essential for the functioning of a government. It helps the government collect revenue to finance its various activities and provide public goods and services.