Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Income Tax vs GST

Diwaker Zee Jha (Student) (22 Points)

26 June 2018

If i already paid income tax on my income then why we paid GST on purchase of good.

Reply
Follow
Share

4 Replies

Rohit jain (Chartered Accountant / Company Secretary) (221 Points)
Replied 27 June 2018

Because one is tax on income and other is tax on purchase of goods or services, more precisely your purchasing power. Both are separate levies.

Jatin (Accountant) (3479 Points)
Replied 27 June 2018

GST is indirect tax , pay everybody while purchase of goods or services if GST applicable

Income Tax is direct tax, if your income taxable then income tax paid by you.

Both taxes are separate for each other, so paid by you

payal (Study) (106 Points)
Replied 27 June 2018

Listen, income tax is direct tax, which is levy only when your income is more than exemption limit , which is levy on income of 5 sources
Income from house property
Income from salary
Income from other source
Income from business & profession
Income from capital gain
More you earn, more tax you will pay

But gst is indirect tax means you not bear the burden of this tax if you have business
You can get credit of this tax if you are registered dealer but if you take composition scheme then it become part of your cost

ROHIT KHUTETA (STUDENT) (87 Points)
Replied 27 June 2018

In simple words..income tax collected by govt is not sufficient to run the economy og country..so both the taxes r levied.
Income Tax is paid by a few % of citizens whereas every consumer have to bear the indirect taxes