A comprehensive indirect tax imposed on the delivery of goods and services is known as the goods and services tax, or GST.

A comprehensive indirect tax imposed on the delivery of goods and services is known as the goods and services tax, or GST. It is intended to simplify the tax system by replacing several indirect levies that were previously in force. Value-added taxes, such as GST, are gathered at every point in the supply and manufacturing chains. The final consumer bears the entire cost of the tax.

Many Components:

The Goods and Services Tax (GST) is frequently enacted as a dual or multiple tax structure, consisting of the State Goods and Services Tax (SGST), which is imposed by the state government, and the Central Goods and Services Tax (CGST), which is imposed by the federal government. The Integrated Goods and Services Tax (IGST) is imposed on interstate transactions.

Input Tax Credit (ITC): 

Companies that pay GST on inputs—goods and services used in the production process—are eligible to receive a credit for it. This guarantees that taxes are only applied to value addition at each stage and helps to eliminate the cascading effect of taxes.

Destination based tax:

Being a destination-based tax, GST is imposed at the point of consumption of the products or services. This is in contrast to the previous tax systems that were origin-based.

Oline System:

Online methods for filing returns, registering for GST, and making payments have been put in place in several nations. The goal of this digitization is to improve the efficiency, transparency, and error-proneness of the tax procedure.

Threshold limits:

Smaller companies may benefit from exemptions from GST registration up to a specific revenue threshold, which makes doing business easier for them.

Compliance:

Companies must submit regular GST returns with information about their purchases and sales. In order to avoid fines, compliance with GST requirements is essential. 


Many nations throughout the world have introduced the Goods and Services Tax (GST), each with unique rates, exclusions, and regulations. It is regarded as a critical step in the direction of lowering tax evasion, fostering economic growth, and developing a cohesive and transparent tax system.