Goods and Services Tax (GST) is a consumption-based comprehensive indirect tax levied on the supply of goods and services that was introduced in India on 1st July 2017, Abolished serveral indirect taxes and replaced them levied by the central and state governments. GST is considered as one of the important indirect tax reforms in India since independence that has a significant impact on the economy and the business environment. GST is a pan-India single unified tax on both Goods and Services, levied only on ‘value added’ to goods or services at each stage in the economic supply chain. GST has several benefits, including reducing the tax burden on consumers, simplifying the tax regime, and promoting the ease of doing business in India.

The GST system in India is a dual GST system, meaning that both the central government and the state governments levy GST on the supply of goods and services. The GST council, which is a constitutional body, is responsible for making recommendations on various aspects of GST, including rates, exemptions, and thresholds. Under GST regime, a supplier must obtain GST registration in each of such state or union territory from where he provides supply of goods or services if the taxable value of supply exceeds the threshold limit. Once registered in GST, one needs to follow all the rules & provisions mentioned under GST act and ensure all the compliances are adhered to.

GST is levied at multiple rates, including 0%, 5%, 12%, 18%, and 28%. Some goods and services are exempt from GST, such as fresh fruits and vegetables, books, and certain healthcare services. Additionally, there is a special rate of 0.25% on rough precious and semi-precious stones, and a compensation cess is levied on certain luxury goods and sin goods, such as cigarettes and tobacco products.