GST an Overview - Summary
Goods and Services Tax (GST) is a vital indirect tax (or consumption tax) in India on the supply of goods and services. This comprehensive tax system is multistage and destination-based, combining almost all indirect taxes except a few state taxes. The multistage nature of GST means it is charged at every step of the production process but is refunded to all parties except the final consumer. Being a destination-based tax, GST is collected from the point of consumption rather than from the point of origin, which was how earlier tax systems worked.
Understanding GST Tax Slabs
Under the Goods and Services Tax (GST), goods and services are categorized into five tax slabs: 0%, 5%, 12%, 18%, and 28%. However, some essential items like petroleum products, alcoholic drinks, and electricity are not included under GST; instead, they are taxed separately by state governments, following the previous tax system. There is also a special rate of 0.25% for rough precious and semi-precious stones, and a 3% rate on gold.
Special Rates and Cess under GST
Additionally, certain items like aerated drinks, luxury cars, and tobacco products incur a cess of 22% or more on top of the already high 28% GST. Before GST was implemented, the average statutory tax rate for most goods was around 26.5%. Now, with GST in place, many goods are expected to fall into the 18% tax range.
To explore more about GST, you can download the GST an Overview PDF using the link provided below or by accessing the alternative link. 📥
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GST Rates for Services
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Form GSTR -9C
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Input Tax Credit Mechanism under GST
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GST Tax Guru
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New GST Rate List 2025
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GST Ghatak List
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CSD Area Depots GSTIN and Contact Numbers List
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List of GST Exempted Goods