Goods and Services Tax or GST is a comprehensive indirect taxation system in India, which came into effect on 1st July 2017 as a result of the 101st amendment to the constitution of India. It replaced the multiple state and central taxes on goods and services, such as VAT, service tax, excise duty, entertainment tax, octroi and others. GST is basically an unified tax structure which aims to boost efficiency and streamline compliance. Five different tax slabs, 0%, 5%, 12%, 18% and 28%, make up the GST system. Petroleum products, alcohol and electricity are not covered under GST and taxed by the respective state governments.
GST is applicable at each and every stage of the supply chain with input tax credit. The GST structure is based on CGST, SGST, IGST and UGST. CGST is levied by the central government on intra-state transactions. SGST is levied by state governments on intra-state transactions. IGST is levied by the central government on inter-state transactions and imports. UGST is applicable in union territories.
The tax rates, exemptions and policies of GST are decided by a GST Council comprising of the Union Finance Minister and state finance ministers. GST collections ranged 1.7-1.8 lakh crore rupees monthly in the financial year 2024-25.
Brand Ambassador of GST
Iconic Bollywood actor Amitabh Bachchan is the brand ambassador of GST. The Central Board of Excise and Customs of the Government of India appointed Amitabh Bachchan as the brand ambassador of GST, ahead of its implementation on 1st July 2017. The veteran actor starred in a 40-second video released by the Ministry of Finance of the Government of India. In the video, Bachchan explained the significance of GST, describing it as a unifying force akin to the three colours of the Indian national flag. He also asserted that GST creates ‘one nation, one tax, one market’.
Prior to Amitabh Bachchan’s appointment, ace shuttler PV Sindhu was the brand ambassador of GST. She appeared in some promotional videos before being replaced by Bachchan.
