What is the Full Form of SAD in GST?
The SAD Full Form in GST is Special Additional Duty. Before the implementation of GST, there was a Special Additional Duty was imposed to balance the excise duty applied to local products. In this view, the tax differences are imported goods, and they cannot become cheaper than domestic products.
Special Additional Duty Summary:
All in all, SAD worked as a fiscal measure that helped the indigenous goods along with imported goods to retain parity in prices. It also supported the relief of local taxes on domestic goods before GST was introduced
Integration and Replacement by GST:
GST has been implemented from 1st July 2017, which subsumes many of the previous taxes, including SAD. Under this system, Special Additional Duty and Countervailing Duty (CVD) are replaced by Integrated Goods and Services Tax (IGST). Shift to IGST makes it less complicated in terms of the tax framework, allows a wide base of taxes, and reduces the complexity in management arising on account of the multiplication of various indirect taxes. Now, IGST is levied at the time of the calculation of customs duties on all imports and the value as determined by the Customs Tariff Act. This method ensures that the benefits of input tax credit can extend across state lines and there is also an enhancement in transparency in taxation along with streamlining of business operations.