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GST (Goods and Services Tax)

Unified indirect tax replacing multiple state and central taxes in India.

Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in India. Introduced on July 1, 2017, it replaced multiple indirect taxes like VAT, Service Tax, Central Excise, and more.

GST is divided into three components:

  • CGST (Central GST) - Goes to the Central Government
  • SGST (State GST) - Goes to the State Government
  • IGST (Integrated GST) - For inter-state transactions

Businesses with turnover above Rs 40 lakhs (Rs 20 lakhs for services) must register for GST.

Examples

  • A Mumbai business selling goods to a Delhi buyer pays IGST
  • A local restaurant charges CGST + SGST on food bills

Deadline

11th and 20th of every month for returns

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