In this video we will see about what is Gst and what is Income tax. This video talk about difference between Gst and Income Tax and who should register under Gst and who should file Income tax return.
Difference Between GST and Income Tax
The main difference between GST and Income tax is, GST is levied on consumption of goods and services whereas Income tax is levied on income earned in a financial year.
GST is the indirect tax paid to the government whereas Income tax is the direct tax paid to the government.
GST is levied only on buying a product and using a service whereas Income tax is levied on salary, house, revenue from a business, income from capital gain.
The tax burden of GST shifts from the manufacturer to the consumer whereas no such transfer can happen in income tax if a person earns income which reaches the benchmark of taxation, he/she is liable to pay the Income tax.
GST registration is mandatory if a company makes an annual turn over of 20/40/10 lakhs per year while Income tax is levied on individuals if the annual salary is more than 2.5 lakhs.
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