Goods and Services Tax (GST)
GST (Goods and Services Tax) is an indirect tax introduced in India on July 1, 2017, replacing multiple central and state indirect taxes like Excise Duty, VAT, Service Tax, and Octroi.
Tax Slabs in India
- 0%: Essential food items, unbranded grains.
- 5%: Mass consumption goods, basic medicines, economy air travel.
- 12%: Processed food, apparel above threshold.
- 18%: Most electronics, financial services, telecom, software.
- 28%: Luxury goods, automobiles, tobacco, online gaming.
Components of GST
- CGST (Central GST): Collected by Central Government on intra-state sales.
- SGST (State GST): Collected by State Government on intra-state sales.
- IGST (Integrated GST): Collected by Central Government on inter-state sales.