What is GST in India | Read the full form of GST with meaning

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If you are a beginner in GST then you are in the right place to learn everything about GST in India in 2023. 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 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.

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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

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“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।


“जीएसटी” या शब्दाचा अर्थ “वस्तू आणि सेवा कर” आहे. जीएसटी राष्ट्रीय स्तरावर वस्तूंच्या निर्मिती, विक्री आणि वापरावर तसेच सेवांवर अप्रत्यक्ष कर आकारणी आहे.


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.


“ജി എസ് ടി” എന്ന പദം “കെയ്സും സർവീസ് ടാക്സും” ആണ്. ദേശീയ തലത്തിൽ ഉല്പന്നങ്ങൾ, ഉല്പന്നങ്ങൾ, ഉപഭോഗ ഉൽപ്പന്നങ്ങൾ, സേവനങ്ങൾ എന്നിവയ്ക്കായി പരോക്ഷമായ പരോക്ഷമായ ജിഎസ്ടി ആണ്.


“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.


“ஜிஎஸ்டி” என்ற சொல், “சரக்குகள் மற்றும் சேவை வரி” என்பதாகும். GST என்பது உற்பத்தி, விற்பனை மற்றும் பொருட்களின் நுகர்வு மற்றும் தேசிய அளவிலான சேவைகளில் விரிவான மறைமுக வரிகள்.


“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

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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

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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 Delhi GST Act, UP GST act, MP GST Act, and so on, in addition to the CGST Act by the Central Government.  IGST (Integrated GST) would be levied on inter-state supplies of goods and services through the IGST Act by the Central Government.

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 an input tax credit for further transactions.

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

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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 and product substitutes, it promotes economic efficiency and sustainable long-term economic growth.

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

ParticularsGST Calculation (INR)
Cost of production80000
Input Tax credit (Assuming Nil)0
add: Profit Margin10000
Producers basic Price90000
Add: Central GST @ 9%8100
Add: State GST @ 9%8100
Sale price106200

Wholesaler to Retailer

ParticularsGST Calculation (INR)
Cost of Goods 106200
Input Tax Credit16200
Add: Profit Margin10000
Total :100000
Add: Central GST @ 9%9000
Add: State GST @ 9%9000
Total price to Retailer118000

Retailer to final Consumer

ParticularsGST Calculation (INR)
Cost of Goods118000
Input Tax Credit18000
Add: Profit Margin10000
Total :110000
Add: Central GST @ 9%9900
Add: State GST @ 9%9900
Total price to the Consumer129800

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)/UTGST.

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.

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

What is GST in India?

The GST is a destination-based tax charged on the supply of Goods or services in India.

What is the full form of GST?

The full form of GST is Goods and Service Tax.

What is GST Input Tax credit?

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..

What is the GST percentage?

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%.

Who is the founder of GST in India?

Prime Minister Mr Atal Bihari Vajpayee introduced the concept of GST in India.

When GST was implemented in India?

The GST was implemented on 01st July 2017 in India.