The main objective of GST is to create a unified and simplified tax system, reduce tax cascading, and promote ease of doing business.

GST replaces multiple indirect taxes, such as VAT, excise duty, and service tax, with a single tax, streamlining the taxation process.

GST comprises Central GST (CGST), State GST (SGST), and Integrated GST (IGST) for interstate transactions.

Input Tax Credit (ITC) allows businesses to offset the tax they have paid on inputs against the tax they collect on outputs, reducing the tax liability.

GST rates are categorized into four slabs: 5%, 12%, 18%, and 28%, with some goods and services attracting a nil rate or falling under the cess category.

The liability to pay GST typically falls on the supplier of goods or services, except in cases of reverse charge where the recipient is liable.

The threshold limit for GST registration varies based on the type of business and location, with a higher limit for small businesses.

GST is calculated as a percentage of the transaction value, with the applicable rate determined based on the type of goods or services.

CGST is collected by the Central Government, while SGST is collected by the State Government on the same transaction to avoid double taxation.

Integrated GST (IGST) is applicable on interstate transactions and is collected by the Central Government.

Businesses need to register, file returns, and pay GST regularly, while individuals generally encounter GST only when making purchases.

HSN (Harmonized System of Nomenclature) codes are used for goods, and SAC (Service Accounting Codes) are used for services to classify them under GST.

• CGST stands for Central Goods and Services Tax. CGST is charged on Local Sales within State which is collected by Central Government. CGST will replace taxes like Central Excise and Service tax
• GST stands for State Goods and Services Tax which is charged on Local Sales within State. SGST is charged and collected by the State Government. SGST will replace taxes like VAT, Luxury tax and Entertainment tax
• IGST stands for Interstate Goods and Services Tax. IGST will be charged on Central Sales (Sales Outside the State) which will be charged and collected by the Central Government on the Interstate Supply of Goods and Services. IGST will replace taxes like CST(Central Sales Tax).