GST & Tax
Economics · GST और कर
📋Quick Overview
GST (Goods and Services Tax) was launched on 1 July 2017 through the 101st Constitutional Amendment Act (passed 8 Sep 2016). It replaced multiple indirect taxes with 'One Nation, One Tax'. GST has 4 main slabs: 5%, 12%, 18%, and 28%. The GST Council (Article 279A) is the apex decision-making body, chaired by the Union Finance Minister. Taxes are classified as Direct (income tax, corporate tax) and Indirect (GST, customs duty). India follows a dual GST model — CGST (Central) + SGST (State) for intrastate, IGST for interstate transactions.
⭐
GST launched: 1 July 2017 (101st Amendment). 'One Nation, One Tax'. Assam was the FIRST state to ratify GST. France was the first country in the world to implement GST (1954).
📖GST Structure
| Type | Full Form | Applicability | Collected By |
|---|---|---|---|
| CGST | Central GST | Intrastate (within same state) | Central Government |
| SGST | State GST | Intrastate (within same state) | State Government |
| IGST | Integrated GST | Interstate (between two states) + Imports | Central Government (shared later) |
| UTGST | Union Territory GST | Intra-UT (within UT without legislature) | UT Administration |
- •GST Slabs: 0% (essential items like milk, fruits), 5%, 12%, 18%, 28% + Cess on luxury/sin goods
- •Items OUTSIDE GST: Petroleum products (petrol, diesel, ATF), alcohol for human consumption, electricity, real estate (partly)
- •GST Council: Chairman = FM, Members = State FMs. Decisions by 3/4th majority (Centre = 1/3 weight, States = 2/3 weight)
📖Direct vs Indirect Tax
📝Taxes Subsumed by GST
- •Central taxes subsumed: Central Excise Duty, Service Tax, CVD, SAD, Central Surcharges & Cesses
- •State taxes subsumed: State VAT, Entry Tax, Purchase Tax, Luxury Tax, Entertainment Tax, Octroi
- •Customs Duty is NOT subsumed by GST — it is still separate