GST is a tax on economic activities, like manufacturing, services or trading.
It will be levied on nearly all supplies except those listed as exempted supplies and imports. Alcohol for human consumption and five petroleum products (crude oil, petrol, diesel, ATF & natural gas) are exempted from GST.
The tax has four slab rates of 5, 12, 18 and 28 per cent.
GST is collected at the point of consumption.
The new tax replaces eight Central and nine State taxes.
Composition Scheme for traders, manufacturers and restaurant owners with annual turnover below Rs 75 lakh offers lower tax option at 1, 2, and 5 per cent on the turnover respectively.
The Centre will levy and administer Central GST (CGST) and Integrated GST (IGST). States will levy and administer State GST (SGST).
No GST registration is required for entities with annual turnover of less than Rs 10 lakh for the North-East, Himachal Pradesh and Uttarakhand and Rs 20 lakh for the rest of India.
GST will have to be paid online through the GSTN platform, along with filing of appropriate returns, such as GSTR-1, GSTR-2, GSTR-3 and so on.