GST (Goods and Services Tax) is the process of taxation in India passed by central government of India. It is done to bring uniformity in taxation system in India. Goods & Services Tax is a single tax system for all supply of goods and services. It is an indirect tax and a destination based tax of India. After implementation of GST , Sales Tax/Service Tax/Customs Duty/Excise Duty etc. don’t exist. GST is formed on the expectations to bring state economies and to improve overall economic growth of the country. Businesses are required to obtain a GST Identification Number in every state they are registered. GST has 5 rates of taxes i.e 0%, 5%, 12%, 18% and 28%.
GST in india was implemented on 1 July 2017. And there are around 160 + countries all over the world which have implemented GST in their country as a single taxation process. The GST was first implemented in France and GST in India is based on the Canadian Model. GST in India was made on the recommendation of Vijay Kelkar Committee. During passing GST bill in parliament ; 336 votes casted in favour of GST bill and 11 votes were against it. Assam was the first state which implemented the GST in India.
India has adopted the Dual GST model in which both State & Central levies tax on goods or services or both.
Types of GST in India :
SGST – State GST, collected by the State Govt.
CGST – Central GST, collected by the Central Govt.
IGST – Integrated GST, collected by the Central Govt.
UTGST – Union territory GST, collected by union territory government