Value addition tax: continuous input tax credit ensures only incremental GST on each supply, final consumer bears last-stage tax. GST is a tax on value addition at each stage of the supply chain with a continuous set-off mechanism via Input Tax Credit, allowing suppliers to deduct ... Summary
Value addition tax: continuous input tax credit ensures only incremental GST on each supply, final consumer bears last-stage tax.
GST is a tax on value addition at each stage of the supply chain with a continuous set-off mechanism via Input Tax Credit, allowing suppliers to deduct tax paid on inputs from tax due on outputs so that net GST remitted equals tax on incremental value added and the final consumer bears the ultimate tax burden.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.