| Features of GSTComprehensive – It has subsumed almost all the indirect taxes except a few state taxes.Multi-stage – It is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer.Destination-based – It is collected from point of consumption and not point of origin like previous taxes.Tax Slabs – GST is divided into five different tax slabs for collection of tax: 0%, 5%, 12%, 18% and 28%. Exceptions – Petroleum products, alcoholic beverages, and electricity are not taxed under GST.Objective of GST – To achieve the ideology of ‘One Nation, One Tax’. |
Goods and Services Tax (GST) collections hit an all-time high of ₹2.10 lakh crore in April, 2024 reflecting robust economic growth.
- But the revenue collected from GST in India, as a percentage of the country’s Gross Domestic Product (GDP), is still not higher than the revenue collected from indirect taxes before GST was implemented.
- Goods and Services Tax is an indirect tax used in India on the supply of goods and services. It replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc.
- It came into effect from 1st July 2017 through the implementation of the 101st Amendment to the Constitution of India.
- The tax rates, rules and regulations are governed by the GST Council, consisting of the finance ministers of the central government and all the states.
Dig Deeper: Read about Indirect and Direct taxes, along with wealth tax
