Key Points at a Glance

GST (Goods and Services Tax) is a comprehensive, multi-stage, destination-based indirect tax levied on the supply of goods and services in India. It replaced over 17 Central and State taxes including Central Excise Duty, Service Tax, VAT, CST, Octroi, and Entry Tax. Implemented on 1 July 2017.

Constitutional basis: The 101st Constitutional Amendment Act, 2016 inserted Article 246A (giving both Parliament and State Legislatures power to legislate on GST), Article 269A (for IGST on inter-state supply), and Article 279A (for GST Council).

Dual GST structure: India follows a Dual GST model — Centre and States both levy tax simultaneously on the same supply. Four components: (i) CGST — levied by Centre; (ii) SGST — levied by State; (iii) IGST — on inter-state supply (Centre collects, shares with states); (iv) UTGST — for Union Territories without legislature.

GST rate slabs (as of 2024): 0% (exempted — food grains, fresh vegetables, education, healthcare), 5% (essential goods — edible oils, sugar, tea, coal, economy class air travel), 12% (processed food, computers, medicines), 18% (most services, FMCG, chemicals), 28% (luxury goods, tobacco, cement, automobiles) + Cess on sin goods.

GST Council (Article 279A): A constitutional body with Union Finance Minister as Chairperson and State Finance Ministers as members. Decides rates, exemptions, thresholds, and policy matters. Decisions by 3/4th weighted majority (Centre = 1/3 weight; all States combined = 2/3 weight).

Input Tax Credit (ITC): A mechanism that allows registered businesses to deduct the GST paid on inputs (purchases) from the GST payable on outputs (sales). This eliminates the cascading effect (tax on tax). ITC can be claimed only if: supplier has filed return, the invoice is reflected for credit, and the goods/services are used for business.

GSTN (GST Network): A Section 8 not-for-profit company (incorporated in 2013) that provides the IT backbone for GST. It handles registration, return filing, tax payment, refund processing, and invoice matching. Originally set up with mixed ownership, it is now fully government-owned: Centre (50%) and States collectively (50%).

Composition Scheme: A simplified tax option for small businesses, but with different turnover limits by category: manufacturers/traders and eligible restaurants generally up to ₹1.5 crore (₹75 lakh in special category states), and eligible service providers up to ₹50 lakh under the concessional scheme. They pay flat tax rates (1%, 5%, and 6% respectively), cannot claim ITC, and generally cannot make inter-state outward supply.

GST registration threshold: Generally mandatory for businesses with annual turnover above ₹40 lakh (goods) or ₹20 lakh (services) [₹20 lakh / ₹10 lakh for special category states]. Some categories must register regardless of turnover, such as e-commerce operators, persons liable under reverse charge, and other notified persons.

Key GST returns: GSTR-1 (monthly/quarterly — outward supplies); GSTR-3B (summary return — self-assessed); GSTR-9 (annual return); GSTR-9C (reconciliation statement — for turnover > ₹5 crore); GSTR-10 (final return on cancellation of registration).

E-way Bill: Electronic waybill mandatory for transporting goods worth > ₹50,000 (intra-state or inter-state). Generated on the E-way Bill Portal (ewaybillgst.gov.in). Valid for: ≤100 km = 1 day; every additional 100 km = 1 extra day (ODC cargo = every 20 km = 1 day). Prevents tax evasion in transit.

GST impact on Rajasthan: Rajasthan is a consuming state (more imports than exports of manufactured goods) — GST's destination-based principle favours consuming states. Rajasthan receives IGST share based on consumption. Rajasthan GST revenue has grown from ~₹20,000 crore (2017-18) to ~₹50,000 crore (2023-24), a ~150% increase.