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What is GST (Goods and Services Tax)?
Quick answer
GST, or Goods and Services Tax, is a single indirect tax India charges on most goods and services. It replaced a tangle of older taxes with one nationwide system, so the same product is taxed the same way across every state.
Key things to understand
- One nationwide indirect tax on goods and services.
- Replaced many older state and central taxes.
- Charged in slabs — commonly 5%, 12%, 18%, and 28%.
- Paid by the buyer but collected and remitted by sellers.
People also ask
What are the GST slabs in India?
Most items fall into 5%, 12%, 18%, or 28% slabs, with essentials often at 0% or 5% and luxury goods at 28%.
Who actually pays GST?
The final consumer bears it in the price, while registered businesses collect it and pass it to the government.
What is the benefit of GST?
It unified India into one market with one tax, reducing 'tax on tax' and making prices more consistent across states.
Part of the guide: Money Basics: Save, Borrow & Invest →