Goods and Services Tax (GST

What is the main difference between VAT and GST?

What is the tax slab for rough precious and semi-precious stones under GST?

Which items are not taxed under GST?

Why is GST considered a destination-based tax?

What is the general tax range for most goods post-GST implementation?

What is the main difference between VAT and GST in India?

What is the tax slab for rough precious and semi-precious stones under GST?

Why are petroleum products, alcoholic drinks, and electricity not taxed under GST in India?

What is the general tax range for most goods post-GST implementation in India?

What rate of cess applies on several items like aerated drinks, luxury cars, and tobacco products under GST in India?

Key Differences Between VAT and GST

VAT (Value Added Tax) is a state-level tax while GST (Goods and Services Tax) is a comprehensive national tax.
GST incorporates multiple indirect taxes into a single tax structure allowing for easier compliance.

Tax Slab for Rough Precious and Semi-Precious Stones

Rough precious and semi-precious stones are taxed at a rate of 0% under GST, promoting the gem industry.

Items Not Taxed Under GST

Certain essential items, including healthcare and educational services, remain exempt from GST to support affordability.

GST as a Destination-Based Tax

GST is applied based on the location of consumption, meaning the tax revenue goes to the state where the goods are consumed rather than produced.

General Tax Range for Goods Post-GST Implementation

Post-GST, most goods fall under a tax range of 5% to 28%, streamlining the previous multiple tax rates.

Main Differences Between VAT and GST in India

GST replaces various state and central taxes, providing a unified framework, reducing the cascading effect of taxes experienced under VAT.

Non-Taxed Petroleum Products, Alcoholic Drinks, and Electricity

These items are subjected to state taxes and not included in GST, allowing states to retain control over significant revenue sources.

Cess Rates on Specific Items under GST in India

A higher cess rate applies to luxury items and sin goods, such as aerated drinks (around 12% to 15%), luxury cars, and tobacco products, to discourage consumption.

Test your knowledge about the Goods and Services Tax (GST) in India and its comparison to the Value Added Tax (VAT). Learn about the digitalized nature of GST, its taxation slabs, and its comprehensive, multistage, destination-based tax structure.