User
Notification
Bs_logoimage

Goods and Services Tax

About Goods and Services Tax

Facebook IconLinkedIN Icon

What is Goods and Services Tax

The Goods and Services Tax (GST) is a uniform indirect tax levied on goods and services across the country. GST, as an umbrella tax, replaced central taxes like central excise, service tax, additional duties of excise & customs, special additional duty of customs, besides cesses and surcharges, on supply of goods and services.
 
Central GST and State GST
 
CGST is levied on intrastate supplies by the central government and SGST is levied on intrastate supplies by respective state governments. 
 
Integrated GST
 
IGST is levied on interstate supplies by the Centre (equal to CGST + SGST combined on supplies made within the state).
 
Any supply of goods or services or both on interstate basis typically attracts IGST on the consideration thereof.
 
Key features of GST
 
* GST envisages all transactions and processes to be done only through the electronic mode, to achieve a non-intrusive administration. This minimises the taxpayer's physical interaction with tax officials.
 
* GST provides for the facility of auto-populated monthly returns and annual return.
 
* It also facilitates taxpayers by prescribing grant of refund within 60 days, and provisional release of 90 per cent refund to exporters within 7 days.
 
* Further facilitation measures include interest payment if refund is not sanctioned in time, and refund to be directly credited to bank accounts.
 
* Comprehensive transitional provisions for ensuring smooth transition of existing taxpayers to GST regime, credit for available stocks, etc.
 
* Other provisions include system of GST compliance rating, etc.
 
* Anti-profiteering provisions for protection of consumer rights: Any benefit by way of reduction in rate of tax or increase in input tax credit arising due to introduction of GST are passed on to customers (through reduction in sale price) by way of commensurate reduction in prices. 
 
* Under the GST regime, exports are zero-rated in entirety, unlike the earlier system where refund of some of the taxes did not take place due to fragmented nature of indirect taxes between the Centre and states.
 
* GST is largely technology-driven and reduces the human interface to a great extent
 
* GST is believed to have improved ease of doing business in India.
 

Latest Updates on Goods and Services Tax

Slabs, cess, and trade-offs: India's GST faces a fork in the road

With rate slabs ripe for consolidation and the compensation cess at a crossroads, India's GST revamp must balance political economy, revenue stability, and taxpayer fairness

Updated On: 25 Jul 2025 | 9:02 AM IST

How tax systems unfairly penalise even honest, hardworking taxpayers

The digital tax era promised ease - pre-filled returns, real-time data, and seamless reporting

Updated On: 13 Jul 2025 | 9:14 PM IST

June e-way bills 2.6% lower than May, indicating possible GST moderation

Intra-state e-way bills stood at 78.85 million in June, while inter-state e-way bills were at 40.60 million during the month

Updated On: 07 Jul 2025 | 11:23 PM IST

Net GST receipt growth slipped sharply to 3.3% in June: Govt data

June's net revenues from the indirect tax, based on transactions carried out in May, were also impacted by the back of sharp 28.4 per cent rise in total refunds to ₹25,491 crore

Updated On: 01 Jul 2025 | 11:29 PM IST

Gross GST collections double in 5 years to record Rs 22.08 trillion in FY25

The average monthly collection stood at Rs 1.84 trillion in FY25, up from Rs 1.68 trillion in FY24 and Rs 1.51 trillion in FY22

Updated On: 30 Jun 2025 | 5:15 PM IST

Statsguru: As GST turns eight yrs old, need for reform push grows

The goods and services tax (GST), net of refunds, now yields close to ₹20 trillion to the exchequer - both the Centre's and states'

Updated On: 29 Jun 2025 | 11:33 PM IST

We're the largest gig worker employer in the country: Rapido cofounders

We're currently in over 35 cities with taxis and aim to be present in every district headquarters, says Rapido

Updated On: 08 Jun 2025 | 11:36 PM IST

GST returns to become time-barred after 3 years starting July tax period

GST outward supply returns, besides returns related to payment of the liability, annual returns and tax collected at source will become time-barred

Updated On: 07 Jun 2025 | 2:55 PM IST

Over 22 Indian states demand 50% share in central tax revenue allocation

More than 22 states have asked the 16th Finance Commission to raise their share of central tax revenue from 41 per cent to 50 per cent, says chairman Arvind Panagariya

Updated On: 04 Jun 2025 | 5:20 PM IST

Gross GST collections rise 16.4% to over Rs 2.01 trn in May: Govt data

Goods and Services Tax (GST) collection had touched a record high of Rs 2.37 trillion in April. In May, 2024, the mop up was Rs 172,739 crore

Updated On: 01 Jun 2025 | 7:34 PM IST

GST Council to take up rate rationalisation issue in next meeting

A GoM headed by Minister of State for Finance Pankaj Chaudhary is looking into the future of compensation cess beyond March 2026

Updated On: 23 May 2025 | 11:32 PM IST

Hike Motor TP rates, cut GST on health premiums: Non-life insurers to govt

DFS Secretary urges insurers to improve claims processing in order to reduce customer inconvenience

Updated On: 08 May 2025 | 12:13 AM IST

Online gaming firms oppose retrospective 28% GST, not the levy itself

Gaming firms tell Supreme Court they accept 28 per cent GST on entry value but challenge retrospective tax demands based on gross volume rather than real stakes

Updated On: 07 May 2025 | 8:37 PM IST

CBIC issues new rules to simplify GST registration, curb official overreach

The revised guidelines aim to curb discretionary demands for extraneous documents, a frequent complaint among taxpayers who have reported harassment and inconsistency in the registration process

Updated On: 19 Apr 2025 | 12:39 AM IST

3 Shemaroo Entertainment staffers get Bombay HC relief in GST case

The dispute originated from an input tax credit (ITC) issue involving Rs 70 crore, which tax authorities alleged Shemaroo had falsely claimed

Updated On: 17 Apr 2025 | 11:13 PM IST

SC to hear pleas challenging retrospective tax on online gaming from May 5

In the last hearing, the court had directed the Centre and the GST department to file their response to the pleas by online gaming companies

Updated On: 08 Apr 2025 | 7:23 PM IST

5% GST for restaurants with non-specified premises: Finance Ministry

Option of 5% GST without ITC or 18% with ITC to be applicable on restaurant services provided at non-specified premises, clarifies FinMin

Updated On: 27 Mar 2025 | 10:30 PM IST

GoM reviewing GST on farm equipment and inputs: FM Nirmala Sitharaman

Says existing provisions under I-T Act have gaps in addressing digital data

Updated On: 25 Mar 2025 | 11:46 PM IST

RBI, NPCI approve Rs 2 hike in ATM interchange fee from May 1, 2025

The revised interchange is not applicable for micro-ATM, interoperable cash deposit (card-based and UPI-based), and international ATM transactions

Updated On: 25 Mar 2025 | 10:36 PM IST

GST Council meet: Uniform 5% rate on drones for business use on agenda

This could be a major relief to India's burgeoning drone industry, which consists of around 488 drone companies that have collectively secured $518 million in funding so far

Updated On: 21 Mar 2025 | 12:32 AM IST