GST (Goods and Services Tax)

India's unified indirect tax on the supply of goods and services, charged at each stage with credit for tax already paid.

Goods and Services Tax (GST) is the comprehensive indirect tax that replaced most earlier central and state taxes in India from 1 July 2017. It applies to the supply of most goods and services and is collected at every stage of the supply chain.

GST is a destination-based, multi-stage tax. Businesses charge GST on their sales (output tax) and claim credit for the GST paid on their purchases (input tax credit), so tax is effectively paid only on the value they add.

Common slabs: 0%, 5%, 12%, 18% and 28%.
Types: CGST + SGST for intra-state sales, IGST for inter-state.
Businesses above the turnover threshold must register and file returns (GSTR-1, GSTR-3B).
Each registered business gets a 15-digit GSTIN.

Frequently asked questions

Who needs to register for GST?

Generally businesses with annual turnover above ₹40 lakh for goods (₹20 lakh for services; lower in special-category states), plus certain categories like inter-state suppliers and e-commerce sellers regardless of turnover.

What is the difference between CGST, SGST and IGST?

For sales within a state, GST splits into CGST (central) and SGST (state). For sales between states, a single IGST (integrated) is charged instead.

GST (Goods and Services Tax)

Frequently asked questions

Who needs to register for GST?

What is the difference between CGST, SGST and IGST?

Related terms