The full form of GST is Goods and Service Tax. The Indian government levies a single indirect tax known as GST. It might be among the most crucial tax cuts the nation has ever seen. The legislation combines all indirect taxes, including VAT, Central Excise Tax, Luxury Tax, Service Tax Act, Entertainment Tax, and Entry Tax.
To put it, a regular indirect tax under GST, which implies GST, would be given on any domestically produced items and services connected to imports. On March 29th, 2017, Parliament approved the GST Act. On July 1st, 2017, the tax went into effect. The GST was implemented to boost the country’s economic development and to manage taxes more efficiently.
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Types of GST
There are mainly three types of GST, and they are as follows:
- Central Goods & Service Tax (CGST)
The CGST is a tax on the distribution of goods and services within a state. Central Excise Duty, Services Tax, Additional Excise Duty, CVD (Countervailing Duty), and the Excise Duty on the Medical & Toiletries Preparation Act are included under these taxes.
- State Goods & Service Tax (SGST)
The tax imposed on products and services delivered inside a state’s borders is known as the SGST. The act unifies the numerous state taxes, including entertainment, admission, luxury, and state income tax.
- Integrated Goods & Service Tax (IGST)
The taxes paid for the worldwide delivery of services and goods are subject to IGST. For instance, if the goods are traded between Delhi and West Bengal, the IGST will be applicable. In addition, IGST is levied on the import and export of goods and services from India.
Products exempt from the GST
A list of commodities does not fall under GST is listed below.
- Spices
- Live animals
- Fertilizers
- Meat
- Fillets & Fish
- Trees & live plants
- Meat
- Alcohol
- Coffee & Teas
- Dry fruits
- Vegetables
- Edible grains
- Musical & Industrial instruments
- Pharmaceutical & Drugs
- Claws & hooves.