GST is one indirect tax for the whole nation, which will make India one unified common market.

GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the following stage of value addition, which makes GST basically a tax only on value addition at each stage. The final consumer will thus pay only the GST levied by the last dealer in the supply chain, with set-off advantages at all the previous stages.

The following taxes are being subsumed at the Central level: a. Central Excise Duty, b. Additional Excise Duty, c. Service Tax, d. Additional Customs Duty is commonly known as Countervailing Duty and e. Special Additional Duty of Customs. At the State level, the following taxes are being subsumed: a. Subsuming of State Value Added Tax/Sales Tax, b. Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), c. Octroi and Entry tax, d. Purchase Tax, e. Luxury tax, and f. Taxes on lottery, betting, and gambling.

Alcohol for human consumption, Petroleum Products viz. petroleum crude, motor spirit (petrol), high-speed diesel, natural gas, and aviation turbine fuel& Electricity.

Tobacco and tobacco products would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.

India is a federal country where both the Centre and the States have been allocated the powers to levy and collect taxes through suitable legislation. Both levels of Government have distinct responsibilities to act according to the division of powers defined in the Constitution for which they are required to raise resources. A dual GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism.

The Centre will levy and allocate CGST & IGST while respective states will levy and administer SGST.

Under the GST regime, an Integrated GST (IGST) would be levied and gathered by the Centre on the inter-State supply of goods and services. The GST shall be levied and collected by the Government of India on supplies made during interstate trade or commerce according to Article 269A of the Constitution, and it shall be apportioned between the Union and the States in accordance with the recommendations of the Goods and Services Tax Council as provided by law.

The CGST and SGST would be levied at rates to be together determined by the Centre and States. The rates would be informed of the recommendations of the GST Council.

Imports of Goods and Services will be treated as inter-state supplies and IGST will be charged for the import of goods and services into the country. The incidence of tax will follow the goal principle and the tax revenue in the case of SGST will accrue to the State where the imported goods and services are finished. Full and complete set-off 14 15 will be available on the GST spent on the import of goods and services.

Goods and/or services supplied are taxable events. Intrastate supplies will be subject to CGST and SGST, while interstate supplies will be subject to IGST. The charging section is section 7 (1) of the CGST/SGST Act and Section 4(1) of the IGST Act.

Goods and services are both subject to reverse charges.

The receiver of goods will not be able to get ITC. Additionally, the recipients who are registered under composition schemes would be responsible to pay tax under reverse charge.

No, the composition scheme is applicable subject to the condition that the taxable person does not concern with interstate supplies.

No, a taxable person under the composition scheme is not eligible to plead an input tax credit.