What does GST stand for in relation to taxation?

GST stands for Goods and Services Tax. It is a value-added tax levied on most goods and services sold for domestic consumption. Under this tax structure, businesses collect tax on behalf of the government when they sell products or provide services to consumers. This system is designed to streamline the taxation process and ensure that the government receives revenue based on the consumption of goods and services, rather than based on the income of individuals or businesses.

The term "Goods and Services Tax" accurately reflects the broad scope of what is taxed under this system, encompassing both tangible products and intangible services. This comprehensive coverage is important for ensuring a fair contribution to government revenues from all sectors of the economy. In addition, the use of "tax" in the term indicates that it is a mandatory contribution to the state's treasury, which plays a vital role in funding public services and infrastructure.