Finance
What is GST?
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.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains gst.
Key things to understand
- 1One nationwide indirect tax on goods and services.
- 2Replaced many older state and central taxes.
- 3Charged in slabs — commonly 5%, 12%, 18%, and 28%.
- 4Paid by the buyer but collected and remitted by sellers.
Frequently asked questions
- 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.