If you are a beginner in GST then you are in the right place to learn everything about GST in India in 2024. Read the full form of GST and what is GST in India. Also, know-how does GST work in India? Similarly, Hindi learners can find the GST kab, Lagu Hua, with the date and time. Thus, here you can get answers to your questions like What is the meaning of GST, GST ka full form kya hai, GST ka Matlab Kya hai etc. Further, read the features, advantages, types of GST, formula to calculate GST etc.
Main Topics
- What is GST?
- Full form >> Meaning in Different Languages
- Objectives >> Features >> Advantages
- Illustrations
- Why dual GST? >> What is IGST?
- FAQ
What is GST in India?
The term “GST” stands for “Goods and Service Tax“. GST is a comprehensive (All-inclusive, full, complete) indirect tax levy(charge) on the manufacture, sale, and consumption of goods as well as services at the national level. Thus, GST in India came into force throughout India on 01st July 2017.
Further, the government has provided an online GST portal website namely www.gst.gov.in which has to be used by taxpayers to perform almost all activities. These activities include GST Registration, filing GST returns, Applying for GST refunds, cancellation of GST registration and so on. You may read more about the GST in the below section of the full form of GST and IGST.
Full Form of GST & Related Terms
Here is the list of Full forms of GST and related terms in India. Read the full form of CGST, SGST and UTGST. Also, read the meaning of each term and its usage in tax collection in India.
GST = GOODS AND SERVICE TAX
The full form of GST is Goods and Service Tax in India. Thus, the Goods are any commodities/materials sold to the customer. whereas the Service is a type of service provided to the customer or consumer. Thus, the government charges the Tax when these goods or services are supplied.
CGST = Central Goods and Service Tax
The Central Goods and Service Tax (CGST) is charged by the Central government and the whole part of the tax collected belongs to the central government.
SGST = State Goods and Service Tax
The State Goods and Service Tax(SGST) belongs to the state from where the tax is collected.
UTGST = Union Territory Goods and Service Tax
The UTGST is charged, wherever the union territories exist. Therefore, the government currently charge CGST + SGST OR CGST + UTGST. Also, in some cases, Cess is also charged.
IGST = Integrated Goods and Service Tax
The full form of IGST is Integrated Goods and Service Tax. The IGST is only chargeable for inter-state transactions. This is also applicable to imports and exports.
Full-Form of SAC, RCM, ITC, etc.
SAC – Service Accounting Code
The full form of SAC is the service Accounting Code in GST. The SAC is allotted to the various type of services in GST. For eg. SAC Code 996601 is allowed the Rental services of road vehicles including buses, coaches, cars, trucks, and other motor vehicles, with or without an operator. You may find all SAC codes from here.
RCM – Reverse Charge Mechanism
The reverse charge mechanism is the full form of RCM under GST. The RCM concept is used for services on which the recipient is liable to pay the GST. Check out the various types of RCM in GST.
ITC – Input Tax Credit
The full form of ITC in input tax credit in GST. The input tax credit is the credit on the purchase of goods or services or both which can be availed by such recipient to set off the tax liabilities. Read the beginner’s guide on input tax credit in GST.
LUT – Letter of undertaking
The letter of undertaking is a guarantee to the government to be provided by the taxpayer for supplying goods or services without payment of IGST in the case of export or supplies to the SEZ zone.
HSN – Harmonized System Nomenclature
The full form of HSN is the Harmonized System Nomenclature. The HSN code is used to categorize the various type of Goods in GST and customs. For eg., the HSN 38070020 code is used for Wood Tar oils, wood creosote and wood naphtha. Find out more about HSN codes here.
GSTR – Goods and Service Tax Return
Since you are aware of the full form of GST, the ‘R’ only stands for Returns in GST. There is various type of GST returns in the new tax system. For eg. GSTR 1 return is to be filed to declare the details of outward supplies. Read more about GST Returns here.
GST Meaning in Different Indian Languages
| Hindi | “जीएसटी” शब्द का अर्थ है “सामान और सेवा कर”. जीएसटी एक व्यापक अप्रत्यक्ष कर प्रभार है, जो कि राष्ट्रीय स्तर पर वस्तुओं के निर्माण, बिक्री और उपभोग पर आधारित है। |
| Marathi | “जीएसटी” या शब्दाचा अर्थ “वस्तू आणि सेवा कर” आहे. जीएसटी राष्ट्रीय स्तरावर वस्तूंच्या निर्मिती, विक्री आणि वापरावर तसेच सेवांवर अप्रत्यक्ष कर आकारणी आहे. |
| Gujarati | શબ્દ “જીએસટી” નો અર્થ છે “ગુડ્ઝ એન્ડ સર્વિસ ટેક્સ. જીએસટી રાષ્ટ્રીય સ્તરે માલ ઉત્પાદન, વેચાણ અને વપરાશ તેમજ સેવા પર વ્યાપક પરોક્ષ કર ચાર્જ છે. |
| Malayalam | “ജി എസ് ടി” എന്ന പദം “കെയ്സും സർവീസ് ടാക്സും” ആണ്. ദേശീയ തലത്തിൽ ഉല്പന്നങ്ങൾ, ഉല്പന്നങ്ങൾ, ഉപഭോഗ ഉൽപ്പന്നങ്ങൾ, സേവനങ്ങൾ എന്നിവയ്ക്കായി പരോക്ഷമായ പരോക്ഷമായ ജിഎസ്ടി ആണ്. |
| Punjabi | “ਜੀਐਸਟੀ” ਸ਼ਬਦ ਦਾ ਅਰਥ ਹੈ “ਗੁਡਸ ਅਤੇ ਸਰਵਿਸ ਟੈਕਸ”. ਜੀਐਸਟੀ ਕੌਮੀ ਪੱਧਰ ‘ਤੇ ਸਾਮਾਨ ਦੇ ਨਾਲ-ਨਾਲ ਸੇਵਾਵਾਂ ਦੇ ਨਿਰਮਾਣ, ਵਿਕਰੀ ਅਤੇ ਵਰਤੋਂ’ ਤੇ ਵਿਆਪਕ ਅਤਿਰਿਕਤ ਟੈਕਸ ਚਾਰਜ ਹੈ. |
| Tamil | “ஜிஎஸ்டி” என்ற சொல், “சரக்குகள் மற்றும் சேவை வரி” என்பதாகும். GST என்பது உற்பத்தி, விற்பனை மற்றும் பொருட்களின் நுகர்வு மற்றும் தேசிய அளவிலான சேவைகளில் விரிவான மறைமுக வரிகள். |
| Telugu | “GST” అనే పదానికి “గూడ్స్ అండ్ సర్వీస్ టాక్స్”. GST అనేది దేశీయ స్థాయిలో ఉత్పత్తి, అమ్మకం మరియు వస్తువుల వినియోగం అలాగే సేవలపై సమగ్ర పరోక్ష పన్ను విధింపు. |
Basics and Objectives of GST In India
The main objective of GST in India is to cover most of the indirect tax levies into a single tax, replace multiple tax levies, overcome the limitations of the current indirect tax structure, and create efficiencies in the tax administration.
Also, another reason to go to the GST way is to facilitate continuous credit across the entire supply chain and across all states under a common tax base.
The previous framework allowed limited inter-levy credits between excise duty (tax on manufacture) and service tax (tax on specified services). However, no cross credits were available between the input VAT on the purchase of goods and the CENVAT, or vice-versa.
Hence, GST is a broad-based and single comprehensive tax levied on goods and services consumed in an economy. GST offset is available at each stage of the production and distribution chain with the corresponding offsetting of taxes which you pay at earlier stages. Therefore, It is a tax on final consumption.
With the use of extensive computerization, it would widen the indirect tax network and eliminate the avoidance of tax.
To summarize, GST is a tax on the supply of goods and services, which is leviable at each point of sale of goods or provision of service, where the seller of the goods or provider of services may claim the credit of input tax which he has paid while purchasing the goods or procuring the services.
Features of GST in India
1. In India, GST is a “Dual GST” with both Central GST and State GST components levied on the same base. All goods and services, barring a few exceptions, are already in the GST base. Importantly, there will be no distinction between goods and services with common legislation applicable to both.
2. Important Reason for Dual GST: India is a federal country where both the Centre and the states have separate powers to levy and collect taxes through appropriate legislation; accordingly, both levels of Government have distinct responsibilities to perform.
3. The power to levy tax is drawn from the Indian Constitution, which has been amended through the Constitution (101st Amendment) Act, 2016 assented to by the President of India on 8 September 2016. Since GST requires different kinds of taxation powers than the ones provided for in the present constitution, certain constitutional Amendments have been necessitated in this context.
4. All the amendments in the constitution of India are effective from 16 September 2016, except in respect of the creation of the GST council, which was effective from 12 September 2016.
5. Necessary powers came into force upon the parliament and the state legislatures, through Article 246A of the constitution of India, to make laws governing GST.
Every state will legislate its own GST law, such as the
More Other Features
6. GST subsumes various Central and State indirect taxes/duties on supplies of Goods and Services.
7. Alcoholic liquor for human consumption is kept outside the GST structure.
8. Also, petroleum goods are kept outside the purview of GST.
9. Exports are Zero-rated and are relieved of all embedded taxes and levies at both central and State levels.
10. Import of Goods and services falls as inter-state supplies and are subject to IGST in addition to the applicable customs duties. This IGST is levied in lieu of CVD and SAD and is available as
11. Taxpayers with an aggregate turnover in a financial year up to IN
R 20 lakhs are exempt from Tax.
12. Small taxpayers with an aggregate turnover in a financial year up to 1.5 crores are eligible for the composition scheme.
Advantages of GST in India
1. Implementation of GST in India has resulted in the abolition of multiple types of taxes on Goods and Services.
2. Removes the cascading effect of taxation and removes distortion in the economy.
3. Reduces compliance costs and increases voluntary compliance.
4. Enhances manufacturing and distribution efficiency, reduces the cost of production of goods and services, and increases demand and production of goods and services.
5. As it is neutral to business processes, business models, organization structure, geographic location
6. Gives a competitive edge in the international market for goods and services produced in the country, leading to increased exports.
7. Results in widening the tax base and increased revenue to the Centre and the states.
8. Reduces litigation, harassment, and corruption.
9. Reduces administrative costs for the Government.
10. Ease in Transaction tracking from its origin to consumption.
GST Illustrations
Let’s assume all parties are located in one state
Central GST Rate = 9% ; State GST Rate = 9%; Profit Margin INR 10,000/- fixed (before tax)
Manufacturer to Wholesaler
| Particulars | GST Calculation (INR) |
| Cost of production | 80000 |
| Input Tax credit (Assuming Nil) | 0 |
| add: Profit Margin | 10000 |
| Producers basic Price | 90000 |
| Add: Central GST @ 9% | 8100 |
| Add: State GST @ 9% | 8100 |
| Sale price | 106200 |
Wholesaler to Retailer
| Particulars | GST Calculation (INR) |
| Cost of Goods | 106200 |
| Input Tax Credit | 16200 |
| Add: Profit Margin | 10000 |
| Total : | 100000 |
| Add: Central GST @ 9% | 9000 |
| Add: State GST @ 9% | 9000 |
| Total price to Retailer | 118000 |
Retailer to final Consumer
| Particulars | GST Calculation (INR) |
| Cost of Goods | 118000 |
| Input Tax Credit | 18000 |
| Add: Profit Margin | 10000 |
| Total : | 110000 |
| Add: Central GST @ 9% | 9900 |
| Add: State GST @ 9% | 9900 |
| Total price to the Consumer | 129800 |
Commodities kept outside the thought of GST
Article 366(12A) of the Constitution, as amended by the 101st Constitutional Amendment Act, 2016 defines the Goods and Services Tax (GST) as a tax/levies on The supply of goods or services or both, except the supply of alcoholic liquor for human consumption.
So alcohol for human consumption is kept out of the GST concept by way of the definition of GST in the constitution. Also, Five petroleum products viz. petroleum crude, motor spirit (petrol), high-speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST Council shall decide the date from which they shall be included under GST in future. Furthermore, electricity has also been kept out of GST.
Type of GST is implemented
It is a dual-type GST with the Centre and States simultaneously levying it on a common tax base. The GST is levied by the Centre within the state supply of goods and/or services would be called the Central GST (CGST) and the GST to be levied by the States/ Union territory would be called the State GST (SGST)/
Similarly, Integrated GST (IGST) will be levied and administered by the Centre on every inter-state supply of goods and services in India after its implementation.
Why is Dual type GST in India?
India is a federal country where both the Centre and the States have been given the power to charge and collect taxes through appropriate law. Both levels of Government have distinct responsibilities to perform according to the division of powers specified in the Constitution for which they need to raise resources. A dual-type GST will, therefore, be in keeping with the Constitutional requirement of fiscal federalism.
What is IGST under GST?
Under the GST implementation, GST (IGST) is collected from the Central Government on the inter-state supply of goods and services. Thus, Under Section 269C of the Constitution, GST is levied on the GST provided by the inter-state trade or trade and is divided between the team and the state in such a way that such taxes will be complied with Parliament by law on the recommendations of the Goods and Services Tax Council. Read more about the full form of GST in the above section.
Major GST Changes in India: Key Updates Since 2017
Since the implementation of the Goods and Services Tax (GST) in India on July 1, 2017, there have been several significant changes and updates to streamline the system and address various challenges. Here are some of the major changes:
- Rate Adjustments: The GST Council has periodically revised tax rates on various goods and services to address industry concerns and economic conditions. For example, the tax rates on essential items have been reduced, while luxury items have seen higher rates.
- E-Invoicing and E-Way Bills: To enhance compliance and reduce tax evasion, the government introduced e-invoicing for businesses above a certain turnover threshold and mandated e-way bills for the movement of goods.
- Simplification of Returns: The return filing process has been simplified over time. The introduction of the Quarterly Return Monthly Payment (QRMP) scheme allows small taxpayers to file returns quarterly while making monthly payments.
- Threshold Limits: The threshold limits for GST registration have been increased to provide relief to small businesses. Initially, businesses with a turnover of up to ₹20 lakh were exempt, which has now been increased to ₹40 lakh for goods.
- Composition Scheme: The composition scheme has been expanded to include more businesses, allowing small taxpayers to pay GST at a fixed rate on their turnover and file quarterly returns.
- Input Tax Credit (ITC) Reforms: Changes have been made to the ITC mechanism to ensure better compliance and reduce fraud. This includes restrictions on availing ITC unless the supplier has uploaded the invoice details.
- GST on Services: The GST Council has made several changes to the tax rates and compliance requirements for services, including reducing rates for specific sectors like hospitality and real estate.
- Compliance and Penalties: The government has introduced stricter compliance measures and penalties for non-compliance to ensure better adherence to GST laws.
These changes reflect the government’s ongoing efforts to make GST more efficient and taxpayer-friendly.
Questions on GST Meaning
Q1. What means GSTIN?
Answer 1: The full form of GSTIN is Goods and Service Tax Identification Number. In other words, it is a GST Number.
Q2. What do you mean by GSTR 1?
Answer 2: The GSTR 1 is a monthly summary return for outward supplies to be reported to the GST department. In other words, it contains the details of sales made during the month.
Q3. What do you mean by Inclusive of GST?
Answer 3: It means the GST amount is already included in the given price. Therefore, the supplier or the shopkeeper should not charge the GST again when this term is used.
Q4. What do you mean by exclusive of GST?
Answer 4: The exclusive of GST means the GST amount is not included in the given price. Thus, the shopkeeper or the supplier may charge the GST amount to you, in addition to the basic price.
Q5. What are goods and service tax logins?
Answer 5: The taxpayer needs to enter the GST portal to perform specific activities, after GST registration.
Q6. Who is goods and services, tax practitioner?
Answer 6: The person who applies for GST practitioner registration and passes the exam is called a goods and services tax practitioner.
Q7. What are goods and services tax offline tools?
Answer 7: The GST portal provides various offline tools or Excel utilities to fill up the data and upload it on the GST portal without the need for the internet.
Q8. How to download goods and services tax offline tools?
Answer 8: Go to the GST portal at www.gst.gov.in >> Click on Downloads >> Offline Tools >> Click on the type of offline tool you want to download.
Q9. What is a goods and services tax registration amendment?
Answer 9: You can make changes to your current registration.
Q10. How do amend returns in goods and services tax?
Answer 10: Log in to the GST portal >> Click on GSTR 1 return filing >> Click on Amendment of b2b or b2c invoice and make the changes.
Q11. How to make goods and services tax online filing?
Answer 11: Visit the GST portal at www.gst.gov.in >> Apply for new Registration online, if not already applied. Login into the portal with your username and password. Thereafter, go to the return section >> Select the type of return and period and file your online return.
Q12: What is a goods and services tax network?
Answer 12: Goods and services tax network is a system, which maintains the entire IT fracture for taxpayers in India.
Q13: Which act introduced GST in India in July 2017?
Answer 13: Central Goods and Service Tax ACT 2017 (CGST ACT 2017).
The FAQ on Goods and Service Tax
The GST is a destination-based tax charged on the supply of Goods or services in India.
The full form of GST is Goods and Service Tax.
The recipient can take the credit on the receipt of goods or services or both when these are used for the furtherance of business. Read more..
It is the percentage of tax charged on the supply of goods or services. For eg., the percentage of the tax rate on LED lights is 12%.
Prime Minister Mr Atal Bihari Vajpayee introduced the concept of GST in India.
The GST was implemented on 01st July 2017 in India.