Goods and Services Tax (India)

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Goods and Services Tax (GST) is an indirect tax in India that replaced several earlier taxes, including VAT, service tax, central excise duty on most goods, entertainment tax, and octroi. These were replaced by a single, comprehensive levy, imposed concurrently by the centre and state governments, with limited exceptions. It is a multi-stage tax levied at each stage of production and distribution, with businesses claiming input tax credits, so the ultimate burden falls on the consumer. The revenue accrues to the state where goods or services are consumed rather than where they are produced. The tax took effect on 1 July 2017 through the 101st Amendment to the Indian Constitution; the day is marked as GST day. GST was initially introduced with five tax slabs—0%, 5%, 12%, 18%, and 28%. Petroleum products, alcoholic beverages, and electricity were excluded and are still taxed separately by state governments. Rough precious and semi-precious stones attract a special 0.25% rate, and gold at...

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