GST stands for Goods and Services Tax, which is a comprehensive indirect tax levied on the supply of goods and services in India. It is a value-added tax that subsumes various indirect taxes like excise duty, service tax, VAT, etc., and aims to simplify the tax structure, eliminate the cascading effect of taxes, and create a common market across the country.
Implemented on July 1, 2017, GST has multiple tax slabs ranging from 0% to 28%, with certain essential items being exempted or taxed at a lower rate. The GST system in India operates under a dual model, wherein both the central and state governments levy and collect the tax concurrently on a common base. The revenue collected under GST is divided between the central and state governments based on the recommendations of the GST Council, which is a constitutional body comprising the Union Finance Minister and representatives from all the states and Union Territories.
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