What is the taxation structure for Indian businesses under GST?

GST follows a dual tax model for intrastate transactions, comprising:

• Central GST (CGST) – levied by the central government
• State GST (SGST) – levied by the state government

For interstate transactions, a combined Integrated GST (IGST) is charged and collected by the central government.

The GST system includes the following tax slabs:

• Zero-rated supplies - 0%
• Lower rate - 5%
• Standard rates - 12% and 18%
• Higher rate - 28%

Additionally, an Extra Cess applies to goods like tobacco, luxury cars, and aerated drinks. All GST-registered businesses receive a 15-digit GSTIN, which is PAN-based and used to track and reconcile transactions on the GST portal.