GST Services

INTRODUCING TAXES IN INDIA

GST: ONE TAX NATIONALLY:

GST (Goods and Services Tax) is a value-added tax levied on the supply of goods and services in India. It replaced several indirect taxes like excise duty, service tax, VAT (Value Added Tax), and others, streamlining the taxation system and promoting a unified market across the country.

A consumer in Kanyakumari now pays the same tax on an item as one in Jammu & Kashmir. GST has also allowed businesses to streamline distribution systems—production, supply chain, storage—to make them more efficient, having previously been forced to design them keeping state taxes in mind.

GST has 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where center and state levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions attract the Integrated Goods and Services Tax (IGST), levied by the center, i.e. when a transaction happens one state to another.