The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government. The tax replaced existing multiple cascading taxes levied by the central and state governments. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalized. Further, GST Registration is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.

Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services. GST is levied at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer.

• GST is the only tax that one needs to get his/her business enrolled under.
• In the event that your business isn’t GST enrolled, heavy fines and punishments can be demanded.
• GST Registration grants you to collect GST from your clients.
• So avoid going against the law, get your business enrolled for GST.

Features	Central GST - CGST	State GST - SGST	Integrated GST - IGST
Tax Levied By	Central Government on Intra-State supplies of Goods and/or Services	State Government, on Intra-State supplies	Central Government, on Inter-State supplies
Applicability	Supplies inside a state	Supplies inside a state	Interstate supplies and import
Input Tax Credit	Against CGST and IGST	Against SGST and IGST	Against CGST, SGST, and IGST
Tax Revenue Sharing	Central Government	State Government	Shared between State and Central governments
Free Supplies	Applicable	Applicable	Applicable