India introduced its Goods & Services Tax (GST) on 1 July 2017
It replaced some 20 consumption taxes charged by the Centre and States, including: CENVAT; VAT; Service Tax; Excise Duty; Cessus; Octroi; and various duties. The aim was to simplify compliance for companies, reduce double taxation caused by overlapping indirect taxes, broaden the tax base and boost the manufacturing sector. It is a destination-based tax, meaning it is charged in the place of consumption.
Indian GST is a combination of the CGST (Centre or federal governments) and SGST (state). The dual GST is levied with the sales price, collected by the vendor and then paid separately to the Centre and appropriate State(s).
Transactions between Indian states
There are 29 Indian states. Where there are intra-state transactions, the Centre levies IGST (Integrated GST). Where goods and services are provided by an out-of-state supplier, the supplier must levy IGST. The customer is entitled to use the IGST credit in their regular GST return.
IGST also applies to imports into India.
Latest Indian news
December 28, 2018
The Indian Goods and Services Tax Council has agreed on to cut the GST rate on over 20 goods and services. The reductions, mostly from the 28% to 18% rate, will come in on 1 January 2019
December 06, 2018
Following the technical issue on the July 2017 introduction of Goods and Services Tax in India, a new simplified GST return will be launched from April 2019
September 26, 2018
India has confirmed the GST withholding rates for online marketplaces handling third party transactions. Tax Collected at Source (TCS) is a means of collecting income...
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