Quick Summary
Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple central and state taxes to create a single unified market.
Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. It was implemented in India on July 1, 2017, replacing multiple indirect taxes levied by central and state governments.
Taxes Subsumed by GST
Central Taxes: Central Excise Duty, Service Tax, Additional Duties of Excise, Additional Duties of Customs, Special Additional Duty of Customs, Cess and Surcharges
State Taxes: VAT/Sales Tax, Entertainment Tax, Octroi, Purchase Tax, Luxury Tax, Taxes on lottery, betting & gambling, State Cess and Surcharges
GST Structure
- CGST: Central Goods and Services Tax (levied by Centre)
- SGST/UTGST: State/UT Goods and Services Tax (levied by State)
- IGST: Integrated Goods and Services Tax (for inter-state supply)
GST Rates
- 0%: Essential goods (food grains, milk)
- 5%: Common use items (tea, sugar, edible oil)
- 12%: Processed foods, computers, mobile phones
- 18%: Most goods and services (standard rate)
- 28%: Luxury items (cars, tobacco, cement)
GST Registration Threshold
- Normal states: ₹20 lakhs annual turnover
- Special category states: ₹10 lakhs annual turnover
- Compulsory registration for inter-state suppliers, e-commerce operators, casual taxable persons
Key Points
- Implemented on July 1, 2017
- Replaced 17+ central and state taxes
- Destination-based consumption tax
- Input Tax Credit (ITC) system
- Monthly/quarterly returns filing
- E-way bill for goods transportation