What is the difference between VAT and GST?

Updated on June 27, 2022

 

A consumption tax known as Value Added Tax (VAT) is levied on the purchase price of most products and services. The Products and Services Tax (GST) is a consumption tax that is levied on the price of all goods and services sold in the country. Despite the fact that their names differ, both the GST and the VAT are the same type of tax.
It is only the exact laws that each country applies to these taxes that varies, such as tax rates, things exempt from tax, and criteria for registration.

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