GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services in India. GST was introduced in India on July 1, 2017, replacing multiple indirect taxes such as central excise duty, service tax, value-added tax (VAT), and others.

There are mainly four types of GST in India:

  1. Central Goods and Services Tax (CGST): CGST is levied by the Central Government on intra-state supplies of goods and services. The revenue generated from CGST is collected by the Central Government.
  2. State Goods and Services Tax (SGST): SGST is levied by the State Government on intra-state supplies of goods and services. The revenue generated from SGST is collected by the respective State Government.
  3. Integrated Goods and Services Tax (IGST): IGST is levied by the Central Government on inter-state supplies of goods and services or imports. It is a combination of both CGST and SGST. The revenue generated from IGST is divided between the Central and State Governments as per the rates specified.
  4. Union Territory Goods and Services Tax (UTGST): UTGST is levied by the Union Territories without a legislature (e.g., Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep, and Chandigarh) on intra-UT supplies of goods and services. The revenue generated from UTGST is collected by the respective Union Territory Administration.

These four components together form the GST framework in India and help streamline the taxation system by eliminating cascading effects and promoting a unified market across the country.