GST: இந்தியாவின் மறைமுக வரி அமைப்பு

The Goods and Services Tax (GST) is a destination-based, comprehensive indirect tax levied on the supply of goods and services across India. It replaced 17 different central and state taxes (excise duty, VAT, service tax, etc.) when it launched on 1 July 2017.

Goods and Services Tax (GST) — இந்தியா முழுவதும் பொருட்கள் மற்றும் சேவைகளின் வழங்கல் மீது விதிக்கப்படும் பயன்படுத்தும் இடம் அடிப்படையிலான விரிவான மறைமுக வரி. 2017 ஜூலை 1-ஆம் தேதி தொடங்கப்பட்டபோது 17 வெவ்வேறு மத்திய மற்றும் மாநில வரிகளை (excise, VAT, service tax) மாற்றியது.

What "destination-based" means

GST is collected at the place of consumption, not the place of production. If a Tamil Nadu factory ships goods to Karnataka, the tax revenue goes to Karnataka. This is opposite to the older system where producing states benefited at consuming states' expense.

The components: CGST, SGST, IGST

GST rate slabs

Input Tax Credit — the magic of GST

A business that buys raw materials pays GST on them. When it sells the finished product, it collects GST from the customer. The business can subtract (claim "input credit" for) the GST it already paid — and remit only the difference to the government. This eliminates the "tax on tax" problem of the old system. The result: lower effective tax burden for end consumers.

GSTIN — every business gets one

Every business with annual turnover over ₹40 lakh (₹20 lakh for services, ₹10 lakh for special category states) must register and get a GSTIN — a 15-digit identification number. The first two digits are the state code; the next 10 are the PAN; the last three are entity-related codes. Receipts you get from registered businesses show the GSTIN.

How GST changed everyday business

Inter-state trucking became faster — no more waiting at state border check posts to pay entry taxes. E-commerce companies must collect tax at source on behalf of sellers. Online filing of returns is mandatory; small businesses use simplified Composition Scheme (a flat low rate, no input credit). Restaurants charge 5% (without ITC) or 18% (with ITC, for AC restaurants).

GST is not perfect — small businesses initially struggled with compliance, and rate disputes still arise. But it created a single national market, made India's tax base more transparent, and significantly increased indirect tax collections — funding more of the welfare state.