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Introducing Taxes in india


GST: One tax nationally:

A consumer in Kanyakumari now pays the same tax on an item as one in Jammu & Kashmir. GST has also allowed businesses to streamline distribution systems—production, supply chain, storage—to make them more efficient, having previously been forced to design them keeping state taxes in mind.

GST has 3 tax components, which includes a central component (Central Goods and Services Tax or CGST) and a state component (State Goods and Services Tax or SGST) where centre and state levy GST on all entities, i.e. when a transaction happens within a state. Inter-state transactions attract the Integrated Goods and Services Tax (IGST), levied by the centre, i.e. when a transaction happens one state to another.

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