What is GST ?

The single indirect tax in the Indian nation is Goods and Services Tax, GST. With the introduction of the tax, the country has become a unified and a common market. GST Law in India is a multi-stage, comprehensive and destination-based tax levied for subsuming the suppliers, and consumers at the Central and the State government levels. The revolutionary date on which the supply of goods and services were imposed the tax was March 29,2017.
What are the taxes subsumed by this single indirect tax?
The nation has taken a wide step in its taxation system to make the functioning and the processing of the supply of goods and services accessible and less time consuming.

The taxes which have been mitigated by the single tax at the Center level are-
Duties of Excise (medicinal and toilet preparations)
Central Excise duty
Additional Duties of Excise (goods of special significance)
Additional Duties of Customs
Special Additional Duties of Customs
Additional Duties of Excise (textile and textile products),
Service Tax
Central surcharges and cesses

If we talk about the GST subsumed State taxes, the list is as follows-
State VAT
Central Sales Tax
Entry Tax
Entertainment and Amusement Tax
Purchase Tax
Luxury Tax
Taxes on advertisements
Gambling, lotteries, and betting
Supply of service and commodities state surcharges and cesses

Basically, every tax which was related to value addition of any good or service has fallen under the category of GST subsumed taxes. This is why the government has replaced all this lengthy list of previously existing taxed with a single tax.

The best tag which we can give to the tax to sum up is, One Indirect Tax for One Country.
Let us equate ourselves with the components of GST.

These are categorized as:

1.CGST- Central Goods and Services Tax is collected on every intra-state sale. The Central Government of the country is the owner of that collected amount. For example, if you sale any good or service within the boundaries of your resident state, then you would need to pay CGST. The rate of the tax must not exceed 14%.

2.SGST- On the other hand, it is the State Goods and Services Tax. The state government levy this tax on the sale done within the state. The key difference between these two types of the single indirect tax is the owner of the tax amount.

The main similarity in CGST and SGST is that the location of both the supplier and the supply is same, i.e. within the state only.

3.IGST- If anyone is into an inter-state sale, import or export of goods and services, i.e. the location of supply and the supplier is different, in that case, he/she is entitled to pay Inter-state GST. In addition to this, SEZ unit is the medium of the supply of goods and services; then this transaction also falls into the category of Inter-State.

Stay tuned for further information on GST.