What is GST in India? Full Guide 2026

Updated: April 2026

GST (Goods and Services Tax) is a unified indirect tax system implemented in India. It replaced multiple indirect taxes like VAT, service tax, and excise duty to simplify the taxation system.

What is GST?

GST is a single tax applied on the supply of goods and services across India.

Types of GST

CGST: Central GST collected by the central government
SGST: State GST collected by state governments
IGST: Integrated GST for interstate transactions

GST Rates in India

GST is divided into different slabs:

5% GST
12% GST
18% GST
28% GST

Benefits of GST

Simple tax structure
Eliminates multiple taxes
Reduces tax evasion
Boosts economic growth

How GST Works

GST is applied at every stage of supply chain, but the final burden is on the consumer.

Calculate GST Easily

Use our free tool to calculate GST instantly:

👉 GST Calculator

Why GST is Important

GST simplifies taxation and makes the system transparent for both businesses and consumers.

FAQs

What is GST in simple words?
GST is a single tax on goods and services.

When was GST introduced in India?
GST was introduced on July 1, 2017.

Who pays GST?
The final consumer pays GST.