GST — Goods and Services Tax
What it means
GST is India's unified indirect tax on the supply of goods and services, which replaced a web of central and state levies (excise, service tax, VAT, entry tax) from 1 July 2017. It is a destination-based, multi-stage tax collected at every point of value addition with credit for tax already paid.
Where you meet it in the CA course
Section B of CA Intermediate Paper 3 (Taxation) and the whole of CA Final Paper 5 (Indirect Tax Laws) are built on GST — supply, charge, input tax credit, registration, returns and refunds.
Worked example
A trader buys goods for ₹1,00,000 + 18% GST (₹18,000) and sells for ₹1,50,000 + 18% GST (₹27,000). Net GST payable in cash = ₹27,000 − ₹18,000 input tax credit = ₹9,000.
Related terms
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Talk to usWhat are CGST, SGST and IGST?
CGST and SGST are the central and state components levied on intra-state supplies (splitting the rate equally); IGST is the integrated tax levied by the Centre on inter-state supplies and imports, later apportioned between Centre and destination state.
Who administers GST in India?
The GST Council (chaired by the Union Finance Minister with state representation) sets rates and policy; the CBIC and state tax departments administer the law.