Title: Goods and Services Tax (GST) in India - An Introduction

Introduction: Goods and Services Tax (GST) is a comprehensive indirect tax

levied on the supply of goods and services in India. It was introduced on July 1,
2017, with the aim of simplifying the taxation system, promoting ease of
doing business, and creating a unified market across the country. GST
replaced multiple indirect taxes levied by the central and state governments,
streamlining the taxation process.

Key Features of GST:

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Single Tax Structure: GST integrates various taxes like Central Excise Duty,
Service Tax, Value Added Tax (VAT), Central Sales Tax (CST), and others into a
single tax structure, eliminating the cascading effect of taxes.
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Dual GST Model: India follows a dual GST model, with two components -
Central GST (CGST) levied by the central government and State GST (SGST)
levied by individual state governments.
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Integrated GST (IGST): For inter-state transactions, an integrated GST is levied,
which is equal to the sum of CGST and SGST. It ensures seamless movement
of goods and services between states.
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Threshold Exemption: Small businesses with an annual turnover below a
specified threshold can avail of a simplified composition scheme and pay a
lower rate of GST.
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Input Tax Credit (ITC): Registered businesses can claim input tax credit for the
GST paid on their purchases, reducing the tax burden on final consumers.
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Online Compliance: GST compliance is done through an online portal, making
it more efficient and transparent.
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