GST Collection Increased

Goods and Services Tax (GST)

• The goods and services tax (GST) is a tax on goods and services sold domestically for consumption.

It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. Multi-staged as it is, the GST is imposed at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer and as a destination-based tax.

• The GST is a common tax used by the majority of countries globally.
• The GST is usually taxed as a single rate across a nation.

Prime Minister Narendra Modi launched GST into operation on the midnight of 1 July 2017. But GST was almost two decades in the making since the concept was first proposed under the Atal Bihari Vajpayee government. 

Different Types of GST:

• Central GST (CGST): GST paid on each transaction is divided into two equal parts: the part for the Centre is termed as CGST.
• State GST (SGST): The part of a state’s share of GST, when a transaction takes place within the state, is called SGST.
• Union Territory GST (UGST): When a transaction takes place within a union territory (UT) without a legislature, the part of GST that the UT gets is called UGST.
• Integrated GST (IGST): When a transaction takes place between two states/UTs or between a state/UT and any foreign territory, IGST is levied without any bifurcation on the applicable GST rate.