What is GST? A Simple Explanation
GST (Goods and Services Tax) is a unified indirect tax levied on the supply of goods and services across India. Introduced on July 1, 2017, it replaced a complex web of central and state taxes including VAT, service tax, excise duty, and octroi. GST follows the principle of "one nation, one tax."
GST Rate Chart 2024
| GST Rate | Common Items |
|---|---|
| 0% | Fresh vegetables, milk, eggs, books, education services |
| 5% | Packaged foods, tea, coffee, footwear under ₹1000, economy class air travel |
| 12% | Computers, processed food, mobile phones, business class air travel |
| 18% | IT services, telecom, restaurant food (AC), most consumer goods, digital services |
| 28% | Luxury cars, motorcycles above 350cc, tobacco, aerated drinks, casinos |