What is the Goods and Services Tax (GST) and how does it work?

The Goods and Services Tax (GST) is a value-added tax in Canada. It is a 5% tax applied to most goods and services sold or provided in the country. The GST is administered by the Canada Revenue Agency (CRA). Businesses that sell taxable goods or services must register for a GST number and collect the tax from their customers. They are then required to remit the collected GST to the CRA on a regular basis. Businesses can also claim input tax credits to recover the GST they paid on their business expenses. The GST helps generate revenue for the federal government and contributes to funding various public services. It is an integral part of Canada's taxation system and affects both businesses and consumers across the country.