India implemented GST on 1 July 2017 through the One Hundred and First Amendment to the Constitution of India. GST replaced multiple indirect taxes previously levied by central and state governments — including state VAT on goods, central excise duty, and service tax — with a single destination-based, value-added tax on the supply of goods and services across India.
GST is a multistage tax applied at every stage of the supply chain from manufacture to final consumption, with seamless input tax credit available for taxes paid on inputs, thus eliminating the cascading of tax.
GST is governed primarily by the Central Goods and Services Tax Act (CGST), State Goods and Services Tax Acts (SGST/UTGST), and the Integrated Goods and Services Tax Act (IGST), and is administered by the Central Board of Indirect Taxes and Customs (CBIC) together with the respective tax authorities of India’s states and union territories.
Under GST, all businesses carrying out taxable activities in India — whether resident or nonresident — must comply with Indian GST obligations. This includes registering for GST when required, charging and collecting applicable GST on supplies of goods and/or services, maintaining business and tax records, filing periodic GST returns, and adhering to GST invoicing and compliance requirements.
GST applies nationwide and creates a common national market in India, with uniform tax laws and procedures for cross-state and intrastate transactions.
