📊 GST Basics
Understanding India's Goods and Services Tax Made Simple
One Tax System
Unified taxation across India
5 Tax Slabs
0%, 5%, 12%, 18%, 28%
3 Types
CGST, SGST, IGST
Scroll down to learn more
🌟 Key Features of GST
Uniform Tax Structure
Same tax system across all parts of India
One Nation, One Tax, One Market
Unified marketplace for all of India
Additional Revenue
Generates more tax money for the government
Better Tax Compliance
Reduces tax evasion and increases honesty
Effective July 1, 2017
Started on this historic date
Destination-Based Tax
Tax paid where goods are consumed
Ease of Doing Business
Makes business operations simpler
Replaced Old Taxes
Replaced 17 indirect taxes and 23 cesses
🔄 Three Types of GST
CGST
Central GST
Levied on intra-state supply
Collected by Central Government
SGST
State GST
Levied on intra-state supply
Collected by State Government
IGST
Integrated GST
Levied on inter-state supply
Collected by Central Government
📊 GST Rate Slab Structure
GST has 5 different tax rates depending on the type of goods or services
⚙️ How GST Works
Key Characteristics
- 🔄 Value Addition: Levied at each stage when value is added to products
- 📦 Supply Focus: Focuses on supply of goods rather than their production
- 💳 Input Tax Credit: Businesses can adjust GST paid on purchases against their GST liability
- 👥 Final Consumer: The last seller passes the GST burden to the final consumer
- 🚫 No Cascading: Removes the "tax on tax" effect that existed earlier
👍 Benefits of GST
Simplified Tax System
One uniform tax across all parts of the country makes things easier for everyone
Bigger Market Size
Enhanced size of the market for domestic producers to sell their goods
More Transparency
Ensures higher degree of transparency in business transactions
Higher Government Revenue
Raised government revenue through better tax collection
Reduced Black Money
Black money transactions are reduced due to better tracking
Ease of Business
Makes it easier to start and run businesses in India
Reduced Tax Burden
Removes the tax burden by eliminating "tax on tax" effect
⚠️ Limitations of GST
Incomplete Coverage
GST is yet to cover all goods produced in the country. Some important items are still excluded from GST.
⚡ Electricity
Power generation
🍷 Alcohol
Alcoholic beverages
⛽ Petrol
Petroleum products
🚛 Diesel
Diesel fuel
Frequently Changing Rates
GST rates across different goods and services are still not finally settled and change frequently, creating confusion for businesses and consumers.
🎉 You've Learned GST Basics!
GST is a revolutionary tax system that has simplified taxation in India. While it has some limitations, the benefits far outweigh the drawbacks, making it a significant step towards a unified tax structure.
Remember: GST = One Nation, One Tax, One Market! 🇮🇳
