What Is a Goods and Services Tax (GST)?
A goods and services tax (GST) is simply a tax on goods and services for domestic consumption. This tax system is in place in about 160 countries, including Canada, India, Vietnam, Australia, United Kingdom, Spain, Italy, Brazil, and South Korea.
France was the first country to implement the GST in 1954, and India adopted the system in 2017.
How a GST Works
Like a sales tax, businesses collect the GST from customers when they purchase goods or services and then remit those taxes to the government. A country using the GST system integrates central taxes with state-level taxes and collects them as one single tax. The tax structure is thus
Why a GST Matters
The goods and services tax (GST) is a federal sales tax and provides revenue to the governments (about 160 countries) in which it is implemented. This revenue is essential for funding nationwide projects and expenditures that serve the public interest.
