1. Localizations for India Implementation Guide
  2. GST Overview

GST Overview

Goods and Services Tax (GST) is a destination-based tax applicable to the supply of goods and services or both that is administered concurrently by the central and state governments throughout the value chain. It is levied at all stages starting from manufacture to final consumption with the credit of taxes to be paid at previous stages as offsets against the tax liability of each stage.

The features of GST are:

  • The central government levies the Central GST (CGST) and the state government levies the State GST (SGST) on every supply of goods and services within a state. Both CGST and Integrated GST (IGST) are levied on the same taxable basis.

  • The central government levies the Integrated GST (IGST) on all inter-state supplies and transfers the tax to the destination state. IGST is also levied on imports of goods to India. A portion of the revenue goes to the state government of the consuming state.

Note: NoteThe government levies GST cess on certain goods and services at a specific rate to collect funds for compensating the states for revenue loss due to the implementation of GST. GST cess is imposed along with the CGST, SGST, and IGST duties levied on the interstate, intrastate, import, and export transactions for these goods and services.