In India, the Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on the supply of goods and services. It has replaced several indirect taxes such as VAT, service tax, excise duty, and others. Here’s an overview of GST charges in India:

GST Tax Rates

GST in India is categorized into five major tax slabs:

1. 0% – For essential items such as fresh fruits, vegetables, and educational materials.


2. 5% – For necessities like packaged food items, edible oil, and transportation services.


3. 12% – For processed foods, footwear (priced above ₹1,000), and certain medicines.


4. 18% – The most common slab, applicable to products like soaps, computers, and dining in restaurants (non-AC).


5. 28% – For luxury items such as automobiles, air conditioners, and tobacco products.



GST Structure

CGST (Central GST): Collected by the Central Government.

SGST (State GST): Collected by the State Government.

IGST (Integrated GST): Collected on inter-state supplies and imports, shared between the Centre and States.


Additional Charges

Cess: Levied on luxury goods and sin products (e.g., tobacco, aerated drinks) over and above the GST rate.


Exemptions

Certain goods and services, such as healthcare, education, and agricultural products, are exempt from GST.

Registration Threshold

Businesses with a turnover exceeding ₹20 lakh (₹10 lakh for special category states) must register for GST.

For certain goods and services, this threshold may vary.


Filing and Compliance

Businesses are required to file monthly, quarterly, and annual GST returns based on their turnover and nature of supply.