FinTech Glossary

What is GST in India?

GST is a comprehensive indirect tax applied on the supply of goods and services in India. It replaced multiple indirect taxes such as VAT, service tax, and excise duty to create a unified tax system across the country.

How GST Works

GST is levied at every stage of value addition but allows input tax credit to avoid cascading taxes. Businesses collect GST from customers and claim credits on taxes paid on inputs. GST is categorised into:

1. CGST (Central GST)

2. SGST (State GST)

3. IGST (Interstate GST)

Businesses must file returns regularly and maintain proper records for compliance.

Why GST Matters for Businesses

GST simplifies the tax structure and improves transparency. It enables seamless movement of goods across states and reduces tax inefficiencies. However, compliance requires accurate invoicing, reporting, and reconciliation. Errors can lead to penalties and cash flow issues due to blocked input credits.

Business Context and EnKash Relevance

Managing GST requires accurate transaction-level data and proper documentation. EnKash helps businesses track expenses and invoices with GST details, making reconciliation and compliance easier while reducing manual effort.