Скачать или смотреть After the September 2025 GST reforms, how many main tax slabs are now in effect in India?

The Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax levied on the supply of goods and services in India. Implemented on July 1, 2017, it replaced numerous central and state indirect taxes with a single, nationwide tax, helping to create a unified national market.
How GST works
GST is applied at each step of the supply chain, with tax levied on the "value addition" at every stage. Businesses can claim an Input Tax Credit (ITC) for taxes paid on purchases, preventing a "tax on tax" effect and reducing the final cost for consumers.
Components of GST
The specific GST component levied depends on the transaction type:
Central GST (CGST): Applied by the central government on transactions within a single state or union territory.
State GST (SGST): Applied by state governments on intra-state transactions, alongside CGST, with revenue shared between central and state governments.
Union Territory GST (UTGST): Applied by union territory administrations without their own legislature.
Integrated GST (IGST): Applied by the central government on inter-state transactions and imports/exports, with revenue shared with the destination state.
Major benefits of GST
Benefits include the removal of the cascading tax effect due to ITC, the creation of a unified national market, simplified online procedures, improved logistics and supply chain efficiency, and increased transparency and compliance through an IT infrastructure.
GST Council
The GST Council, a body comprising central and state representatives, governs the GST framework by making recommendations on rates, exemptions, and procedures. Recently, in September 2025, the council approved a rate overhaul, setting standard slabs at 5% and 18%, and a 40% tax on certain luxury items.