GST is a single, indirect tax applied from manufacturer to consumer on the supply of goods and services across India. There will be four main tax rates of 5%, 12%, 18%, and 28% with some goods and services exempted. Input tax credits can be claimed at each stage of production and distribution with the final consumer paying only the GST charged by the last dealer. The tax is divided into Central GST, State GST, and Integrated GST for inter-state movement of goods and services.

3.  GST is one indirect tax for the whole nation,
which will make India one unified common
market.
 GST is a single tax on the supply of goods and
services, right from the manufacturer to the
consumer.
 GST will be charged only on the value addition.
 The final consumer will thus bear only the GST
charged by the last dealer in the supply chain.
 Credits of input taxes paid at each stage will be
available with set-off benefits at all the previous
stages.
 It is a destination based tax on consumption of
goods and services.

5.  Four tax rates namely 5%, 12%, 18% and 28%
 Some goods and services would be exempt.
 Separate tax rate for precious metals.
 Cess over the peak rate of 28% on specified
luxury and sin goods.

7. India is a federal democracy that is one which has
clear demarcation of powers, responsibility and
revenue collection between the states and the center
in its constitution. For example law and order falls
under the state’s jurisdiction while the nation’s
defense is the center's responsibility. The GST too
needs to have clear provisions on what areas the
center and the state are allowed to collect revenue
from taxation to prevent an overlapping.
The Central GST or CGST is the areas where the
center has the powers and State GST where the State
has taxation capabilities. The IGST or Integrated GST
is for movement of goods within the states of the
Indian union. This will be collected by the union
however will be transferred over to the states. Thus it
is essential that if and when the GST comes out it is
rolled over in the entire nation simultaneously.

9.  Central Level
 Central Excise Duty.
 Additional Excise
Duty.
 Service Tax.
 Additional Customs
Duty.
 Special Additional
Duty of Customs.
 State Level
 Subsuming of State
Value Added
Tax/Sales Tax.
 Entertainment Tax.
 Octroi and Entry tax.
 Purchase Tax.
 Luxury tax.
 Taxes on lottery,
betting and gambling.

10.  Suppose cost of a good = 100
Rate of GST = 20%
Price of Good = 100 + 20% of 100
= 120
Now it is sold at 160, GST will be calculated on the
difference of two (i.e. 160 – 120 = 40)
Now, Price of Good = 160 + 20% of 40
= 160 + 8
= 168

12.  Cross utilization of credit of CGST between
goods and services would be allowed.
Similarly, the facility of cross utilization of
credit will be available in case of SGST.
However, the cross utilization of CGST and
SGST would not be allowed except in the case
of inter-State supply of goods and services
under the IGST model.