GST in India Made Simple
Understand GST registration, GST rates, CGST, SGST, IGST, input tax credit, GST invoices and return filing with simple, practical guidance for individuals, businesses and professionals.
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Goods and Services Tax is an indirect tax on supplies
GST is a destination-based indirect tax system that applies to supplies of goods and services, subject to the provisions and exemptions under India's GST framework.
GST replaced several central and state indirect taxes and created a more unified framework for taxation of supplies across India. The tax structure can involve Central GST, State GST or Integrated GST depending on the nature and location of the supply.
CGST, SGST and IGST explained
The GST components used in a transaction depend primarily on whether the supply is intra-state or inter-state.
Central Goods and Services Tax
CGST is the Central Government component of GST generally applicable to an intra-state supply along with SGST or the relevant Union Territory component.
State Goods and Services Tax
SGST is generally the State Government component charged on an intra-state supply along with CGST, subject to the applicable GST framework.
Integrated Goods and Services Tax
IGST generally applies to inter-state supplies and certain other transactions covered by the integrated GST provisions.
Understand GST from sale to tax payment
For a registered business, GST involves more than simply adding a percentage to an invoice. The business needs to understand registration, invoicing, records, input tax credit and return compliance.
GST rates depend on the goods or services
GST does not have one universal rate. Different goods and services can fall into different rate categories, exemptions or special provisions.
Nil / Exempt
Certain specified goods and services may be exempt or taxed at a nil rate under applicable notifications.
Lower Rate
Specified goods and services can fall within lower GST rate categories.
Standard Category
Some specified supplies fall under the 12% GST rate category.
Common Rate
Many taxable goods and services fall within the 18% category, subject to classification.
A GST invoice connects the transaction with the tax record
A proper GST invoice contains transaction and tax information required under the applicable rules. Accurate invoices help businesses maintain records and support eligible input tax credit claims.
Businesses should maintain invoices, purchase records, sales records and other supporting documents according to the applicable GST compliance requirements.
Explore Tax Guides →Calculate GST on a transaction quickly
A GST calculator can help you estimate the GST amount and understand the relationship between the taxable value, GST rate and total transaction value.
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Common GST Questions
Simple answers to common GST questions for individuals, businesses and new taxpayers.
GST, or Goods and Services Tax, is an indirect tax on the supply of goods and services. It operates through a unified framework with different components depending on the nature of the supply.
CGST and SGST generally apply together to an intra-state supply, while IGST generally applies to an inter-state supply and certain other specified transactions.
Input Tax Credit, or ITC, allows an eligible registered taxpayer to claim credit for qualifying GST paid on inputs used in the course of business, subject to applicable conditions and restrictions.
GST registration requirements depend on factors such as turnover, nature of business, type of supply and specific provisions. Thresholds and exceptions should be checked against the current GST rules.
GST rates vary according to the goods or services. Common rate categories include 5%, 12%, 18% and 28%, along with nil-rated and exempt supplies and special rate provisions.
Yes. GST rates and classifications can change through government notifications and decisions under the GST framework. Businesses should verify the current applicable rate for the relevant supply.
Understand GST Before You Calculate It
Learn the GST basics, understand the applicable components and use the calculator to estimate GST on your transaction.
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