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The Goods and Services Tax

ಕನ್ನಡದಲ್ಲಿ ವಿವರಣೆ

Taxation and GST · Part 2 / 1 · Fact-checked on 23 October 2026 · how we check

Written with AI from the sources listed at the bottom of this page, then fact-checked by a separate AI.

Why India needed GST, the road to the 101st Amendment and what it changed (Articles 246A, 269A, 279A, 366(12A)), CGST, SGST and IGST, input tax credit, the taxes GST replaced and the items left out, the GST Council and Mohit Minerals (2022), rates from 2017 to GST 2.0 (2025), compensation to States and the end of the cess, and how GST is administered.

Each idea is explained first in Kannada (ಕನ್ನಡ), ending with the English and Hindi exam terms, followed by the same point in exam English. UPSC Prelims is in English or Hindi, so understand it in Kannada and revise it in English.

ಹಿಂದೆ ಕೇಂದ್ರದ ತೆರಿಗೆಗಳು ಒಂದು ಪೆಟ್ಟಿಗೆಯಲ್ಲಿ, ರಾಜ್ಯಗಳದ್ದು ಇನ್ನೊಂದರಲ್ಲಿ ಇದ್ದವು. ಸರಕು ಮತ್ತು ಸೇವಾ ತೆರಿಗೆ ಆ ಗೋಡೆಯನ್ನು ಒಡೆಯಿತು: 1 ಜುಲೈ 2017ರಿಂದ ಕೇಂದ್ರ ಅಬಕಾರಿ, ಸೇವಾ ತೆರಿಗೆ, ರಾಜ್ಯಗಳ ವ್ಯಾಟ್, ಪ್ರವೇಶ ತೆರಿಗೆಯಂತಹ ಅನೇಕ ತೆರಿಗೆಗಳ ಬದಲು ಎರಡೂ ಹಂತಗಳು ಹಂಚಿಕೊಳ್ಳುವ ಒಂದೇ ತೆರಿಗೆ. ಏಕೆ ಬೇಕಾಯಿತು, 101ನೇ ತಿದ್ದುಪಡಿ ಏನು ಮಾಡಿತು, ತೆರಿಗೆ ಹೇಗೆ ಕೆಲಸ ಮಾಡುತ್ತದೆ, ಮಂಡಳಿ ಹೇಗೆ ತೀರ್ಮಾನಿಸುತ್ತದೆ, ಯಾವುದು ಹೊರಗಿದೆ, ದರಗಳು, ರಾಜ್ಯಗಳಿಗೆ ಪರಿಹಾರ, ನಿರ್ವಹಣೆ — ಈ ಭಾಗದಲ್ಲಿ ನೋಡೋಣ. (→ English: Goods and Services Tax · हिन्दी: माल और सेवा कर)

In exam EnglishPart 1 showed that the Constitution once kept Union and State taxes in separate boxes. The Goods and Services Tax broke that pattern for taxes on goods and services. Since 1 July 2017 a single tax, shared by both levels, has replaced a long list of older levies, from the Union's excise and service tax to the States' VAT and entry taxes. This part explains why the change was needed, what the 101st Amendment did, how the tax is built, how the GST Council decides, what lies outside GST, how rates changed, how States were compensated and how the system is run.

ಜಿಎಸ್‌ಟಿಗೆ ಮೊದಲು ಒಂದೇ ವಸ್ತುವಿಗೆ ಹಲವು ಕಡೆ ತೆರಿಗೆ: ತಯಾರಿಕೆಗೆ ಕೇಂದ್ರ ಅಬಕಾರಿ, ಸೇವೆಗೆ ಸೇವಾ ತೆರಿಗೆ, ರಾಜ್ಯದೊಳಗೆ ಮಾರಿದರೆ ವ್ಯಾಟ್, ಬೇರೆ ರಾಜ್ಯಕ್ಕೆ ಮಾರಿದರೆ ಕೇಂದ್ರ ಮಾರಾಟ ತೆರಿಗೆ, ಜೊತೆಗೆ ಪ್ರವೇಶ ತೆರಿಗೆ, ಆಕ್ಟ್ರಾಯ್. ಪ್ರತಿ ಸರ್ಕಾರ ತನ್ನ ತೆರಿಗೆಗೆ ಮಾತ್ರ ಜಮೆ ಕೊಡುತ್ತಿತ್ತು. ಕಾರ್ಖಾನೆಯಲ್ಲಿ ತೆರಿಗೆ ಕಟ್ಟಿದ ಬಟ್ಟೆ ದರ್ಜಿಯ ಬಳಿ ಹೋಗಿ ಅಂಗಿಯಾದ ಮೇಲೆ ಆ ಅಂಗಿಯ ಪೂರ್ಣ ಬೆಲೆಗೆ ಮತ್ತೆ ತೆರಿಗೆ — ಹಳೆಯ ತೆರಿಗೆಗೂ ತೆರಿಗೆ. ಇದೇ ತೆರಿಗೆ ಮೇಲೆ ತೆರಿಗೆ ಪರಿಣಾಮ. ಲಾರಿಗಳು ರಾಜ್ಯದ ಗಡಿ ತಪಾಸಣಾ ಠಾಣೆಗಳಲ್ಲಿ ಗಂಟೆಗಟ್ಟಲೆ ಕಾಯುತ್ತಿದ್ದವು. (→ English: cascading effect · हिन्दी: सोपानी प्रभाव)

In exam EnglishBefore GST, a good was taxed many times by different authorities. The Union levied excise when it was manufactured and service tax on services; the States levied VAT on sale within the State and central sales tax on sale to another State, besides entry tax, octroi and other levies. Each authority gave credit only for its own taxes, so a trader paying State VAT could not set off the Union excise already built into the price. Tax was then charged on a price that already contained tax, the cascading effect. Suppose cloth taxed at the factory is sold to a tailor and the shirt is taxed again on its full price: the buyer pays tax on the earlier tax. Lorries also queued at State border checkposts.

ಬದಲಾವಣೆ ಹಂತ ಹಂತವಾಗಿ ಬಂತು. 2005ರಿಂದ ಹೆಚ್ಚಿನ ರಾಜ್ಯಗಳು ವ್ಯಾಟ್‌ಗೆ ಬದಲಾದವು — ಹಿಂದಿನ ಹಂತಗಳಲ್ಲಿ ಕಟ್ಟಿದ ತೆರಿಗೆಗೆ ಜಮೆ, ಆದರೆ ರಾಜ್ಯ ತೆರಿಗೆಗಳ ಒಳಗೆ ಮಾತ್ರ. 2004ರಲ್ಲಿ ವಿಜಯ್ ಕೇಳ್ಕರ್ ಅಧ್ಯಕ್ಷತೆಯ ಕಾರ್ಯಪಡೆ ಸಮಗ್ರ ಜಿಎಸ್‌ಟಿಯನ್ನು ಶಿಫಾರಸು ಮಾಡಿತು. 2011ರ ಮಸೂದೆ 15ನೇ ಲೋಕಸಭೆಯೊಂದಿಗೆ ರದ್ದಾಯಿತು. ಡಿಸೆಂಬರ್ 2014ರಲ್ಲಿ ಬಂದ 122ನೇ ತಿದ್ದುಪಡಿ ಮಸೂದೆಯನ್ನು ಆಗಸ್ಟ್ 2016ರಲ್ಲಿ ಸಂಸತ್ತು ಅಂಗೀಕರಿಸಿತು; ಅರ್ಧಕ್ಕಿಂತ ಹೆಚ್ಚು ರಾಜ್ಯಗಳು ಅನುಮೋದಿಸಿದವು, ಮೊದಲು ಅಸ್ಸಾಂ. 8 ಸೆಪ್ಟೆಂಬರ್ 2016ರಂದು ರಾಷ್ಟ್ರಪತಿಗಳ ಅಂಕಿತದೊಂದಿಗೆ 101ನೇ ತಿದ್ದುಪಡಿಯಾಯಿತು; 1 ಜುಲೈ 2017ರಂದು ಜಿಎಸ್‌ಟಿ ಆರಂಭವಾಯಿತು. (→ English: 101st Amendment · हिन्दी: 101वाँ संशोधन)

In exam EnglishReform came in steps. Most States moved from old sales taxes to VAT from 2005, which gave credit for tax paid at earlier stages, but only within State taxes. The Task Force on implementing the FRBM Act, chaired by Vijay Kelkar, recommended a comprehensive goods and services tax in 2004. A first bill introduced in 2011 lapsed with the Fifteenth Lok Sabha. The Constitution (One Hundred and Twenty-second Amendment) Bill, introduced in December 2014, was passed by Parliament in August 2016 and ratified by more than half of the State legislatures, Assam first. It received the President's assent on 8 September 2016 as the 101st Amendment, and GST began on 1 July 2017.

101ನೇ ತಿದ್ದುಪಡಿ ತೆರಿಗೆ ಅಧಿಕಾರಗಳನ್ನು ಹೊಸದಾಗಿ ಜೋಡಿಸಿತು. ವಿಧಿ 246A: ಜಿಎಸ್‌ಟಿ ಬಗ್ಗೆ ಸಂಸತ್ತು ಮತ್ತು ಪ್ರತಿ ರಾಜ್ಯ ಶಾಸಕಾಂಗ ಏಕಕಾಲದಲ್ಲಿ ಕಾನೂನು ಮಾಡಬಹುದು; ಆದರೆ ಅಂತರರಾಜ್ಯ ಪೂರೈಕೆಯ ಬಗ್ಗೆ ಸಂಸತ್ತು ಮಾತ್ರ. ವಿಧಿ 269A: ಅಂತರರಾಜ್ಯ ಪೂರೈಕೆಯ ಜಿಎಸ್‌ಟಿಯನ್ನು ಕೇಂದ್ರ ವಸೂಲಿ ಮಾಡಿ, ಮಂಡಳಿ ಶಿಫಾರಸಿನಂತೆ ಸಂಸತ್ತು ಹೇಳಿದಂತೆ ಕೇಂದ್ರ-ರಾಜ್ಯಗಳ ನಡುವೆ ಹಂಚುತ್ತದೆ. ವಿಧಿ 279A ಜಿಎಸ್ಟಿ ಮಂಡಳಿ ಯನ್ನು ರಚಿಸುತ್ತದೆ. 366(12A) ವ್ಯಾಖ್ಯಾನ: ಮನುಷ್ಯರು ಕುಡಿಯುವ ಮದ್ಯ ಬಿಟ್ಟು ಸರಕು, ಸೇವೆಗಳ ಪೂರೈಕೆಯ ಮೇಲಿನ ಯಾವುದೇ ತೆರಿಗೆ ಜಿಎಸ್‌ಟಿ. ಸೇವಾ ತೆರಿಗೆಯ ಆಧಾರವಾದ 268A ತೆಗೆಯಲಾಯಿತು. ಐದು ವರ್ಷ ರಾಜ್ಯಗಳಿಗೆ ಪರಿಹಾರದ ಭರವಸೆ. (→ English: GST Council · हिन्दी: माल और सेवा कर परिषद)

In exam EnglishThe 101st Amendment rewired the taxing powers. Article 246A gives Parliament and every State legislature power to make laws on GST at the same time, but only Parliament may legislate on supplies in the course of inter-State trade. Article 269A says GST on inter-State supplies is levied and collected by the Union and divided between the Union and the States as Parliament provides on the Council's recommendation. Article 279A creates the GST Council. Article 366(12A) defines GST as any tax on supply of goods, or services or both, except taxes on the supply of alcoholic liquor for human consumption. Article 268A, the basis of service tax, was omitted, and several list entries, such as the States' entry tax, were deleted or narrowed. Section 18 of the Amendment Act promised States compensation for revenue loss for five years.

ಜಿಎಸ್‌ಟಿ ಎರಡು ಭಾಗದ ತೆರಿಗೆ. ರಾಜ್ಯದೊಳಗಿನ ಮಾರಾಟ: ಒಂದೇ ಬಿಲ್ಲಿನಲ್ಲಿ ಕೇಂದ್ರಕ್ಕೆ CGST, ರಾಜ್ಯಕ್ಕೆ SGST, ಸಮಾನ ದರ; ಶಾಸಕಾಂಗವಿಲ್ಲದ ಕೇಂದ್ರಾಡಳಿತ ಪ್ರದೇಶದಲ್ಲಿ SGST ಬದಲು UTGST. ಒಂದು ರಾಜ್ಯದಿಂದ ಇನ್ನೊಂದಕ್ಕೆ ಮಾರಾಟ ಮತ್ತು ಆಮದಿನ ಮೇಲೆ ಸಮಗ್ರ ಸರಕು ಮತ್ತು ಸೇವಾ ತೆರಿಗೆ — CGST+SGSTಗೆ ಸಮಾನ ದರ; ಕೇಂದ್ರ ವಸೂಲಿ ಮಾಡಿ ನಂತರ ರಾಜ್ಯಗಳ ಪಾಲು ಹೊಂದಿಸುತ್ತದೆ. ತೆರಿಗೆ ವಸ್ತು ತಯಾರಾದ ರಾಜ್ಯಕ್ಕಲ್ಲ, ಬಳಸಿದ ರಾಜ್ಯಕ್ಕೆ ಹೋಗುತ್ತದೆ. ತಮಿಳುನಾಡಿನ ಕಾರ್ಖಾನೆ ಕೇರಳದ ಅಂಗಡಿಗೆ ಫ್ಯಾನ್ ಮಾರಿದರೆ ರಾಜ್ಯದ ಪಾಲು ಕೇರಳಕ್ಕೆ. (→ English: Integrated Goods and Services Tax · हिन्दी: एकीकृत माल और सेवा कर)

In exam EnglishGST is a dual tax. On a supply within a State, the Union levies Central GST (CGST) and the State levies State GST (SGST) at equal rates on the same bill; in a Union territory without a legislature, UTGST takes the place of SGST. On a supply from one State to another, and on imports, the Union levies the Integrated Goods and Services Tax, at a rate equal to CGST plus SGST, and later settles the States' share. GST is a destination-based tax on consumption: the revenue goes to the State where the good or service is finally consumed, not where it was made. So when a Tamil Nadu factory sells fans to a Kerala shop, the factory charges IGST and the State share goes to Kerala. Four central Acts of 2017 and an SGST Act in each State carry the law.

Which GST applies to which supply
Supply	Tax charged	Who levies it
Within a State	CGST + SGST at equal rates	Union (CGST) and State (SGST)
Within a Union territory without a legislature	CGST + UTGST	Union
From one State to another	IGST (= CGST + SGST)	Union, which shares it under Art 269A
Imports	IGST, plus basic customs duty	Union
Exports	Zero-rated (no GST borne)	—

ತೆರಿಗೆ ಮೇಲೆ ತೆರಿಗೆ ನಿಲ್ಲಿಸುವುದು ಇನ್‌ಪುಟ್ ತೆರಿಗೆ ಜಮೆ. ಖರೀದಿಸುವಾಗ ಕಟ್ಟಿದ ಜಿಎಸ್‌ಟಿಯನ್ನು ಮಾರುವಾಗ ವಸೂಲಿ ಮಾಡಿದ ಜಿಎಸ್‌ಟಿಯಿಂದ ಕಳೆದು ಉಳಿದ ವ್ಯತ್ಯಾಸವನ್ನು ಮಾತ್ರ ಸರ್ಕಾರಕ್ಕೆ ಕಟ್ಟುತ್ತಾರೆ. 18% ದರ ಎಂದುಕೊಳ್ಳಿ: ಬಡಗಿ ₹100ರ ಮರ ಕೊಂಡು ₹18 ಜಿಎಸ್‌ಟಿ ಕಟ್ಟಿದರು, ₹150ಕ್ಕೆ ಮೇಜು ಮಾರಿ ₹27 ವಸೂಲಿ ಮಾಡಿದರು. ಮೊದಲು ಕಟ್ಟಿದ ₹18ರ ಜಮೆ ಪಡೆದು ₹9 ಮಾತ್ರ ಕಟ್ಟುತ್ತಾರೆ. ಒಟ್ಟು ₹150 ಬೆಲೆಯ ಮೇಲೆ ₹27 — ತೆರಿಗೆ ಮೇಲೆ ತೆರಿಗೆ ಇಲ್ಲ. ಮಾರಿದವನು ಬಿಲ್ ದಾಖಲಿಸಿದರೆ ಮಾತ್ರ ಕೊಂಡವನಿಗೆ ಜಮೆ, ಹಾಗಾಗಿ ವ್ಯಾಪಾರಗಳು ಲೆಕ್ಕಕ್ಕೆ ಬರುತ್ತವೆ. (→ English: input tax credit · हिन्दी: इनपुट कर प्रत्यय)

In exam EnglishWhat ends cascading is the input tax credit. A business pays GST on what it buys, charges GST on what it sells, and pays the government only the difference, so tax falls on the value it adds. Suppose the rate is 18 per cent and a furniture maker buys timber worth ₹100, paying ₹18 as GST, then sells a table for ₹150 and collects ₹27. She deposits only ₹9 after taking credit for the ₹18 already paid; in all, ₹27 has been collected on a final price of ₹150, never tax on tax. The credit flows across goods and services and across State borders. Because a buyer can claim credit only when the seller reports the invoice, GST also pushes firms into the formal economy.

ಜಿಎಸ್‌ಟಿ ಹೆಚ್ಚಿನ ಪರೋಕ್ಷ ತೆರಿಗೆಗಳನ್ನು ತನ್ನೊಳಗೆ ಸೇರಿಸಿಕೊಂಡಿತು. ಕೇಂದ್ರದ ಕಡೆ: ಅಬಕಾರಿ (ಕೆಲವು ವಸ್ತುಗಳ ಹೊರತು), ಸೇವಾ ತೆರಿಗೆ, ಆಮದಿನ ಮೇಲಿನ ಹೆಚ್ಚುವರಿ ಸೀಮಾ ಸುಂಕಗಳು, ಕೆಲವು ಸೆಸ್‌ಗಳು. ರಾಜ್ಯಗಳ ಕಡೆ: ವ್ಯಾಟ್, ಕೇಂದ್ರ ಮಾರಾಟ ತೆರಿಗೆ, ಪ್ರವೇಶ ತೆರಿಗೆ, ಆಕ್ಟ್ರಾಯ್, ಐಷಾರಾಮಿ ತೆರಿಗೆ, ಖರೀದಿ ತೆರಿಗೆ, ಲಾಟರಿ-ಜೂಜಿನ ತೆರಿಗೆಗಳು; ಸ್ಥಳೀಯ ಸಂಸ್ಥೆಗಳ ಮನರಂಜನಾ ತೆರಿಗೆ ಮಾತ್ರ ಉಳಿದಿದೆ. ಹೊರಗಿರುವವು: ಮನುಷ್ಯರು ಕುಡಿಯುವ ಮದ್ಯ (ವ್ಯಾಖ್ಯಾನದಿಂದಲೇ ಹೊರಗೆ). ಕಚ್ಚಾ ತೈಲ, ಪೆಟ್ರೋಲ್, ಡೀಸೆಲ್, ನೈಸರ್ಗಿಕ ಅನಿಲ, ವಿಮಾನ ಇಂಧನ ಕಾನೂನಿನಲ್ಲಿ ಜಿಎಸ್‌ಟಿಯಲ್ಲೇ ಇದ್ದರೂ ಮಂಡಳಿ ಸೂಚಿಸುವ ದಿನಾಂಕದವರೆಗೆ ಕೇಂದ್ರ ಅಬಕಾರಿ ಮತ್ತು ರಾಜ್ಯ ವ್ಯಾಟ್. ವಿದ್ಯುತ್ ಕೂಡ ಹೊರಗೆ. ತಂಬಾಕಿಗೆ ಜಿಎಸ್‌ಟಿ ಜೊತೆಗೆ ಕೇಂದ್ರ ಅಬಕಾರಿ. (→ English: taxes subsumed in GST · हिन्दी: जीएसटी में समाहित कर)

In exam EnglishGST absorbed most indirect taxes. On the Union side it replaced central excise (except on the goods listed below), service tax, additional customs duties on imports and several cesses. On the State side it replaced VAT, central sales tax, entry tax and octroi, luxury tax, purchase tax and taxes on lotteries, betting and gambling; entertainment tax remains only where local bodies levy it. Some things stayed out. Alcoholic liquor for human consumption is outside GST by definition, so States still tax it. Five petroleum products, crude oil, petrol, diesel, natural gas and aviation turbine fuel, are within GST in law but are taxed only from a date the Council recommends; until then the Union levies excise and the States levy VAT. Electricity is also outside GST. Tobacco is taxed under GST and also bears Union excise.

ಮಂಡಳಿಯ ಅಧ್ಯಕ್ಷರು ಕೇಂದ್ರ ಹಣಕಾಸು ಸಚಿವರು; ಸದಸ್ಯರು: ಕಂದಾಯ ಅಥವಾ ಹಣಕಾಸು ಖಾತೆಯ ಕೇಂದ್ರ ರಾಜ್ಯ ಸಚಿವರು, ಪ್ರತಿ ರಾಜ್ಯ ನಾಮನಿರ್ದೇಶಿಸುವ ಹಣಕಾಸು/ತೆರಿಗೆ ಸಚಿವರು ಅಥವಾ ಇನ್ನೊಬ್ಬ ಸಚಿವರು. ರಾಜ್ಯ ಸದಸ್ಯರು ತಮ್ಮಲ್ಲೊಬ್ಬರನ್ನು ಉಪಾಧ್ಯಕ್ಷರಾಗಿ ಆರಿಸುತ್ತಾರೆ. ಅರ್ಧ ಸದಸ್ಯರಿದ್ದರೆ ಕೋರಂ. ತೀರ್ಮಾನಕ್ಕೆ ಹಾಜರಾಗಿ ಮತ ಹಾಕಿದವರ ತೂಕದ ಮತಗಳಲ್ಲಿ ಕನಿಷ್ಠ ನಾಲ್ಕರಲ್ಲಿ ಮೂರು ಬೇಕು; ಕೇಂದ್ರದ ಮತಕ್ಕೆ ಮೂರನೇ ಒಂದು ತೂಕ, ಎಲ್ಲ ರಾಜ್ಯಗಳಿಗೆ ಸೇರಿ ಮೂರನೇ ಎರಡು. ಕೇಂದ್ರ ಒಂಟಿಯಾಗಿ, ರಾಜ್ಯಗಳು ಒಂಟಿಯಾಗಿ ತೀರ್ಮಾನ ಗೆಲ್ಲಿಸಲಾರವು — ಎರಡೂ ಎತ್ತುಗಳು ಸೇರಿ ಎಳೆದರೆ ಮಾತ್ರ ಗಾಡಿ ಚಲಿಸುತ್ತದೆ. ಮೋಹಿತ್ ಮಿನರಲ್ಸ್ (2022) ಪ್ರಕರಣದಲ್ಲಿ ಸರ್ವೋಚ್ಚ ನ್ಯಾಯಾಲಯ: ಮಂಡಳಿಯ ಶಿಫಾರಸುಗಳು ಮನವೊಲಿಸುವಂಥವು, ಬದ್ಧವಲ್ಲ. (→ English: GST Council, weighted voting · हिन्दी: माल और सेवा कर परिषद, भारित मत)

In exam EnglishArticle 279A sets out the Council. Its chairperson is the Union Finance Minister; its other members are the Union Minister of State in charge of revenue or finance and the minister in charge of finance or taxation, or another minister, nominated by each State. The State members choose a Vice-Chairperson from among themselves. Half the members form the quorum. A decision needs at least three-fourths of the weighted votes of members present and voting; the Union's vote carries one-third of the votes cast and all the States together two-thirds. Neither side can carry a decision alone. The Council recommends on taxes to be subsumed, exemptions, rates, thresholds, model laws and special provisions for the north-eastern and hill States. In Union of India v. Mohit Minerals (2022), the Supreme Court held that its recommendations are persuasive, not binding, on Parliament and State legislatures.

The GST Council at a glance (Article 279A)
Feature	Provision
Chairperson	Union Finance Minister
Other members	Union Minister of State (revenue or finance); one minister nominated by each State
Vice-Chairperson	Chosen by the State members from among themselves
Quorum	One-half of the total members
Decision	At least three-fourths of weighted votes of members present and voting
Weight of votes	Union one-third of votes cast; all States together two-thirds
Legal force	Recommendations persuasive, not binding (Mohit Minerals, 2022)

2017ರಲ್ಲಿ ಹೆಚ್ಚಿನ ವಸ್ತುಗಳು 5, 12, 18, 28 ಶೇಕಡಾ ಎಂಬ ನಾಲ್ಕು ಸ್ಲ್ಯಾಬ್‌ಗಳಲ್ಲಿದ್ದವು; ತಾಜಾ ಧಾನ್ಯ, ಹಾಲಿನಂಥವಕ್ಕೆ ವಿನಾಯಿತಿ, ಚಿನ್ನ, ಬೆಲೆಬಾಳುವ ಕಲ್ಲುಗಳಿಗೆ ವಿಶೇಷ ಕಡಿಮೆ ದರ. ತಂಬಾಕು, ತಂಪು ಪಾನೀಯ, ದೊಡ್ಡ ಕಾರುಗಳಂಥ ಐಷಾರಾಮಿ, ಹಾನಿಕಾರಕ ವಸ್ತುಗಳ ಮೇಲೆ ಹೆಚ್ಚುವರಿಯಾಗಿ ಪರಿಹಾರ ಸೆಸ್. 3 ಸೆಪ್ಟೆಂಬರ್ 2025ರ 56ನೇ ಸಭೆಯಲ್ಲಿ ಅತಿದೊಡ್ಡ ಬದಲಾವಣೆ (ಜಿಎಸ್‌ಟಿ 2.0): 22 ಸೆಪ್ಟೆಂಬರ್ 2025ರಿಂದ 12%, 28% ಸ್ಲ್ಯಾಬ್‌ಗಳು ಬಹುತೇಕ ತೆಗೆದು 5%, 18% ಎಂಬ ಎರಡು ಮುಖ್ಯ ದರಗಳು; ಕೆಲವು ಐಷಾರಾಮಿ, ಹಾನಿಕಾರಕ ವಸ್ತುಗಳಿಗೆ 40%. ವೈಯಕ್ತಿಕ ಜೀವ ಮತ್ತು ಆರೋಗ್ಯ ವಿಮೆಗೆ ವಿನಾಯಿತಿ. (→ English: GST rates · हिन्दी: जीएसटी दरें)

In exam EnglishFrom 2017, most goods and services fell into four main slabs of 5, 12, 18 and 28 per cent, with essentials such as fresh food grains and milk exempt and special low rates for gold and precious stones. A compensation cess was also levied on some luxury and harmful goods, mostly in the 28 per cent slab, such as tobacco, aerated drinks and large cars. Over time the Council moved many items down from 28 per cent. The biggest change, often called GST 2.0, came at its 56th meeting on 3 September 2025: from 22 September 2025, the 12 and 28 per cent slabs were largely removed, leaving two main rates of 5 and 18 per cent, with a 40 per cent rate for a short list of luxury and harmful goods. Individual life and health insurance were exempted.

ತೆರಿಗೆ ಅಧಿಕಾರವನ್ನು ಬಹುತೇಕ ಬಿಟ್ಟುಕೊಟ್ಟಿದ್ದರಿಂದ ರಾಜ್ಯಗಳು ಖಾತರಿ ಕೇಳಿದವು. ಜಿಎಸ್‌ಟಿ (ರಾಜ್ಯಗಳಿಗೆ ಪರಿಹಾರ) ಕಾಯ್ದೆ, 2017: 2015-16ರ ಆದಾಯದ ಮೇಲೆ ವರ್ಷಕ್ಕೆ 14% ಬೆಳವಣಿಗೆ ಐದು ವರ್ಷ (30 ಜೂನ್ 2022ರವರೆಗೆ); ಕಡಿಮೆಯಾದರೆ ಕಲ್ಲಿದ್ದಲು ಸೇರಿ ಐಷಾರಾಮಿ, ಹಾನಿಕಾರಕ ವಸ್ತುಗಳ ಮೇಲಿನ ಜಿಎಸ್‌ಟಿ ಪರಿಹಾರ ಸೆಸ್ ನಿಂದ ಪಾವತಿ. ಕೊರೊನಾ ಕಾಲದಲ್ಲಿ 2020-21, 2021-22ರಲ್ಲಿ ವಸೂಲಿ ಕುಸಿದಾಗ ಕೇಂದ್ರ ಸಾಲ ಪಡೆದು ರಾಜ್ಯಗಳಿಗೆ ಬ್ಯಾಕ್-ಟು-ಬ್ಯಾಕ್ ಸಾಲವಾಗಿ ಕೊಟ್ಟಿತು; ಅವನ್ನು ತೀರಿಸಲು ಸೆಸ್ ಅನ್ನು 31 ಮಾರ್ಚ್ 2026ರವರೆಗೆ ವಿಸ್ತರಿಸಲಾಯಿತು. ಖಾತರಿ ಜೂನ್ 2022ಕ್ಕೆ ಮುಗಿಯಿತು. ಜಿಎಸ್‌ಟಿ 2.0ರಿಂದ 22 ಸೆಪ್ಟೆಂಬರ್ 2025ರಿಂದ ಹೆಚ್ಚಿನ ವಸ್ತುಗಳ ಮೇಲೆ ಸೆಸ್ ಹೋಯಿತು; ತಂಬಾಕಿನ ಮೇಲೆ 1 ಫೆಬ್ರವರಿ 2026ರಂದು ಮುಗಿಯಿತು, ಬದಲಿಗೆ ತಂಬಾಕಿಗೆ ಹೊಸ ಕೇಂದ್ರ ಅಬಕಾರಿ, ಪಾನ್ ಮಸಾಲಾಗೆ ಒಂದು ಸೆಸ್. (→ English: GST compensation cess · हिन्दी: जीएसटी प्रतिकर उपकर)

In exam EnglishStates gave up their power to tax most goods and services, so they asked for a guarantee. The GST (Compensation to States) Act, 2017 promised each State that its GST revenue would grow by 14 per cent a year over its 2015-16 base for five years, until 30 June 2022, with any shortfall paid from a GST compensation cess on luxury and harmful goods, including coal. When the pandemic cut collections in 2020-21 and 2021-22, the Union borrowed and passed the money to States as back-to-back loans, and the cess was extended to 31 March 2026 to repay them. The guarantee itself ended in June 2022. GST 2.0 removed the cess on most goods from 22 September 2025, and on tobacco it ended on 1 February 2026, when a new Union excise on tobacco and a cess on pan masala took its place.

ಜಿಎಸ್‌ಟಿ ನಡೆಯುವುದು ಹೆಚ್ಚಾಗಿ ಆನ್‌ಲೈನ್‌ನಲ್ಲಿ. ನೋಂದಣಿ, ರಿಟರ್ನ್, ಪಾವತಿಗೆ ಕೇಂದ್ರ ಮತ್ತು ಎಲ್ಲ ರಾಜ್ಯಗಳು ಬಳಸುವ ಒಂದೇ ಪೋರ್ಟಲ್ ಅನ್ನು GSTN ಒದಗಿಸುತ್ತದೆ. ವಹಿವಾಟು ಒಂದು ಮಿತಿ ದಾಟಿದರೆ ನೋಂದಣಿ ಕಡ್ಡಾಯ — ಸಾಮಾನ್ಯವಾಗಿ ಸರಕಿಗೆ ₹40 ಲಕ್ಷ, ಸೇವೆಗೆ ₹20 ಲಕ್ಷ, ಕೆಲವು ವಿಶೇಷ ವರ್ಗದ ರಾಜ್ಯಗಳಲ್ಲಿ ಕಡಿಮೆ. ಸಣ್ಣ ಅಂಗಡಿಗಳು ಸಂಯೋಜನಾ ಯೋಜನೆ ಆರಿಸಬಹುದು: ಹೆಚ್ಚಿನ ರಾಜ್ಯಗಳಲ್ಲಿ ₹1.5 ಕೋಟಿವರೆಗಿನ ವಹಿವಾಟಿಗೆ ಕಡಿಮೆ ನಿಗದಿತ ದರ, ಆದರೆ ಇನ್‌ಪುಟ್ ಜಮೆ ಇಲ್ಲ, ಬಿಲ್ಲಿನಲ್ಲಿ ಜಿಎಸ್‌ಟಿ ವಸೂಲಿ ಮಾಡುವಂತಿಲ್ಲ. ಏಪ್ರಿಲ್ 2018ರಿಂದ ಇ-ವೇ ಬಿಲ್ ಮೂಲಕ ತಪಾಸಣಾ ಠಾಣೆಗಳಿಲ್ಲದೆಯೇ ಸರಕು ಸಾಗಣೆ ತಿಳಿಯುತ್ತದೆ. ಮೇಲ್ಮನವಿಗೆ ಜಿಎಸ್‌ಟಿ ಮೇಲ್ಮನವಿ ನ್ಯಾಯಮಂಡಳಿ (ಸೆಕ್ಷನ್ 109). ದರ ಇಳಿಕೆಯನ್ನು ಗ್ರಾಹಕರಿಗೆ ವರ್ಗಾಯಿಸದ ಪ್ರಕರಣಗಳು (ಸೆಕ್ಷನ್ 171) ಡಿಸೆಂಬರ್ 2022ರಿಂದ ಭಾರತೀಯ ಸ್ಪರ್ಧಾ ಆಯೋಗಕ್ಕೆ. (→ English: GST administration · हिन्दी: जीएसटी प्रशासन)

In exam EnglishRunning GST is largely digital. The Goods and Services Tax Network (GSTN) provides the common portal for registration, returns and payment used by the Union and every State. A supplier must register once turnover crosses a threshold, generally ₹40 lakh for goods and ₹20 lakh for services, with lower limits in some special category States. Small firms may choose the composition scheme, paying a low flat rate on turnover up to ₹1.5 crore in most States, but they cannot claim input tax credit or charge GST on their bills. The e-way bill, required from April 2018 for moving goods above a set value, lets officers track goods without border checkposts. Appeals lie to the GST Appellate Tribunal under section 109 of the CGST Act. Anti-profiteering cases, on firms not passing rate cuts to buyers (section 171), moved to the Competition Commission of India in December 2022.

ಜಿಎಸ್‌ಟಿಯ ಲಾಭಗಳು: ಪ್ರತಿ ಹಂತದಲ್ಲಿ ಜಮೆಯಿಂದ ತೆರಿಗೆ ಮೇಲೆ ತೆರಿಗೆ ಬಹುತೇಕ ಹೋಯಿತು; ತಪಾಸಣಾ ಠಾಣೆಗಳು ಹೋಗಿ ದೇಶ ಒಂದೇ ಮಾರುಕಟ್ಟೆಗೆ ಹತ್ತಿರವಾಯಿತು; ಜಮೆಯ ಸರಪಳಿಯಿಂದ ಅನೇಕ ವ್ಯಾಪಾರಗಳು ಲೆಕ್ಕಕ್ಕೆ ಬಂದವು. ನಷ್ಟ ಹೆಚ್ಚಾಗಿ ರಾಜ್ಯಗಳಿಗೆ: ತಮ್ಮ ಪರೋಕ್ಷ ತೆರಿಗೆಗಳನ್ನು ತಾವೇ ನಿರ್ಧರಿಸುವ ಅಧಿಕಾರ ಹೋಗಿ, ಮದ್ಯ, ಪೆಟ್ರೋಲಿಯಂ ಉತ್ಪನ್ನ, ವಿದ್ಯುತ್, ಭೂಮಿ, ಮುದ್ರಾಂಕ ಶುಲ್ಕದಂಥ ಕೆಲವೇ ಉಳಿದವು. 2025ರವರೆಗೆ ಹಲವು ದರಗಳಿಂದ ಸಣ್ಣ ವ್ಯಾಪಾರಗಳಿಗೆ ತೊಂದರೆ; ಜಿಎಸ್‌ಟಿಯ ಹೊರಗಿರುವ ಇಂಧನಕ್ಕೆ ಇನ್ನೂ ತೆರಿಗೆ ಮೇಲೆ ತೆರಿಗೆ. ಮಂಡಳಿ ಕೇಂದ್ರ-ರಾಜ್ಯಗಳು ಸೇರಿ ತೀರ್ಮಾನಿಸುವ ವೇದಿಕೆ — ಸಹಕಾರಿ ಒಕ್ಕೂಟ ವ್ಯವಸ್ಥೆ ಯ ಸ್ಪಷ್ಟ ಉದಾಹರಣೆ. (→ English: cooperative federalism · हिन्दी: सहकारी संघवाद)

In exam EnglishGST's gains are clear. Tax at every stage with credit for earlier tax ended most cascading; removing checkposts made India closer to one national market; and the credit chain drew many firms into the formal economy. Its costs fall mainly on the States, which lost the power to set most of their own indirect taxes and kept only a few bases such as liquor, petroleum products, electricity, land and stamp duty. Many rates made compliance hard for small firms until 2025, and fuel outside GST still carries tax on tax. The Council is the hinge: a forum where the Union and the States decide together, the clearest working example of cooperative federalism.

Exam traps

The GST Council is created by Article 279A of the Constitution (101st Amendment), not by an ordinary Act of Parliament.
In Mohit Minerals (2022) the Supreme Court held that GST Council recommendations are persuasive, not binding, on Parliament and State legislatures.
The Union's vote counts for one-third and the States together for two-thirds of the votes cast; with a three-fourths majority needed, neither side can carry a decision alone.
Alcoholic liquor for human consumption is outside GST by the Constitution's definition; the five petroleum products are inside GST in law but not yet taxed under it.
Only Parliament legislates on GST for inter-State supply; IGST is levied and collected by the Union under Article 269A.
GST is destination-based: the State where goods or services are consumed gets the revenue, not the State where they are produced.
The 14% compensation guarantee ended on 30 June 2022; the compensation cess continued (to repay back-to-back loans) until 2025-26.
GST 2.0 (from 22 September 2025) left two main rates, 5% and 18%, plus 40% for select goods; a composition dealer still cannot claim input tax credit.

Recap

Before GST: Union excise and service tax, State VAT, CST, entry tax and octroi, with credit only within each level's taxes, so tax fell on tax.
Kelkar Task Force (2004) proposed GST; the 122nd Amendment Bill (2014) became the 101st Amendment (assent 8 September 2016); GST from 1 July 2017.
Art 246A: concurrent power, Parliament alone for inter-State supply; Art 269A: IGST; Art 279A: GST Council; Art 366(12A): definition excluding liquor.
Dual GST: CGST + SGST (or UTGST) within a State, IGST between States and on imports; destination-based; input tax credit taxes only value added.
Outside GST: alcoholic liquor for human consumption, electricity; five petroleum products await a Council date; tobacco bears GST plus excise.
Council: Union FM chair, three-fourths of weighted votes, Union one-third, States two-thirds; recommendations persuasive (Mohit Minerals, 2022).
Rates: 5, 12, 18, 28% from 2017; GST 2.0 from 22 September 2025: 5% and 18%, plus 40% for select goods.
Compensation: 14% growth over 2015-16 for five years to June 2022; cess extended to March 2026 for back-to-back loans; ended on tobacco 1 February 2026.
Administration: GSTN portal, thresholds (₹40 lakh goods, ₹20 lakh services generally), composition scheme up to ₹1.5 crore, e-way bill, GST Appellate Tribunal, anti-profiteering with the CCI since December 2022.

Practice questions

Q1. Which Article of the Constitution of India provides for the Goods and Services Tax Council?

Article 246A
Article 269A
Article 279A
Article 280

Show answer

Answer: C. Article 279A

Article 279A creates the GST Council. Article 246A gives the concurrent power to make GST laws, Article 269A deals with GST on inter-State supplies, and Article 280 provides for the Finance Commission.

Q2. With reference to the GST Council, consider the following statements:
1. Its Vice-Chairperson is chosen by the members from the States from among themselves.
2. The vote of the Union carries a weight of one-half of the total votes cast.
3. A decision requires at least three-fourths of the weighted votes of the members present and voting.
Which of the statements given above are correct?

1 and 2 only
1 and 3 only
2 and 3 only
1, 2 and 3

Show answer

Answer: B. 1 and 3 only

Statements 1 and 3 follow Article 279A. Statement 2 is wrong: the Union's vote carries one-third of the votes cast, and the States together two-thirds. Every option including statement 2 is therefore wrong.

Q3. Which one of the following is excluded from the Goods and Services Tax by the definition in Article 366(12A) itself?

Petrol
Alcoholic liquor for human consumption
Tobacco
Natural gas

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Answer: B. Alcoholic liquor for human consumption

The definition of GST excludes taxes on the supply of alcoholic liquor for human consumption. Petrol and natural gas are within GST in law but are taxed only from a date the Council recommends, and tobacco is taxed under GST as well as Union excise.

Q4. Consider the following statements:
1. Integrated GST is levied on goods imported into India.
2. Under GST, the revenue goes to the State where the goods are produced.
Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

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Answer: A. 1 only

Statement 1 is correct: imports bear IGST along with basic customs duty. Statement 2 is wrong: GST is destination-based, so the consuming State gets the revenue. Hence '2 only', 'both' and 'neither' are wrong.

Q5. Match List I with List II:
List I (Article) — List II (Subject)
A. Article 246A — 1. GST on inter-State supplies, levied by the Union and shared
B. Article 269A — 2. Definition of Goods and Services Tax
C. Article 279A — 3. Special power of Parliament and State legislatures to make GST laws
D. Article 366(12A) — 4. GST Council
Select the correct answer using the code given below:

A-3, B-1, C-4, D-2
A-1, B-3, C-4, D-2
A-3, B-1, C-2, D-4
A-4, B-1, C-3, D-2

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Answer: A. A-3, B-1, C-4, D-2

Article 246A gives the special power to make GST laws, 269A covers inter-State GST, 279A creates the Council and 366(12A) defines GST. The second code swaps 246A and 269A, the third swaps the Council and the definition, and the fourth gives 246A the Council.

Q6. In Union of India v. Mohit Minerals (2022), the Supreme Court held that the recommendations of the GST Council are:

Binding on Parliament but not on State legislatures
Binding on both Parliament and State legislatures
Persuasive, not binding, on Parliament and State legislatures
Valid only after approval by the President

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Answer: C. Persuasive, not binding, on Parliament and State legislatures

The Court held the recommendations persuasive, since Article 246A gives Parliament and the States simultaneous power to legislate. They bind neither level, so the first two options are wrong, and the Constitution requires no presidential approval of them, so the last option is wrong.

Q7. With reference to compensation to States under GST, consider the following statements:
1. The GST (Compensation to States) Act, 2017 assumed a 14 per cent annual growth in revenue over the base year 2015-16.
2. The compensation guarantee covered five years and ended on 30 June 2022.
3. The compensation cess was levied on all goods and services.
Which of the statements given above are correct?

1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3

Show answer

Answer: A. 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong: the cess fell only on certain luxury and harmful goods such as tobacco, aerated drinks, large cars and coal. Every option including statement 3 is therefore wrong.

Q8. A trader buys goods worth ₹200 and pays GST at 18 per cent on them. She sells them for ₹300 and charges GST at 18 per cent. Using input tax credit, how much GST does she deposit with the government on this sale?

₹54
₹36
₹18
₹90

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Answer: C. ₹18

She collects 18% of ₹300 = ₹54 and takes credit for the ₹36 (18% of ₹200) paid on purchase, so she deposits ₹54 − ₹36 = ₹18, the tax on the ₹100 of value she added. ₹54 ignores the credit, ₹36 is the tax on her purchase, and ₹90 adds the two instead of subtracting.

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Sources

Constitution of India, Articles 246A, 269A, 279A and 366(12A); Constitution (One Hundred and First Amendment) Act, 2016, including section 18 — https://legislative.gov.in/constitution-of-india/
Central Goods and Services Tax Act, 2017 (including sections 10, 22, 68, 109 and 171); Integrated Goods and Services Tax Act, 2017; Union Territory Goods and Services Tax Act, 2017; Goods and Services Tax (Compensation to States) Act, 2017 — https://www.indiacode.nic.in
Union of India v. Mohit Minerals Pvt. Ltd., Supreme Court of India, judgment of 19 May 2022 — https://main.sci.gov.in
Press Information Bureau, Ministry of Finance releases on the 56th GST Council meeting (3 September 2025), the rate changes from 22 September 2025 and the end of the compensation cess — https://pib.gov.in
Ministry of Finance, Economic Survey 2025-26 (chapter on fiscal developments) — https://www.indiabudget.gov.in/economicsurvey
Constitution (One Hundred and Twenty-second Amendment) Bill, 2014, as passed by Lok Sabha and Rajya Sabha — https://sansad.in
Ministry of Finance, Report of the Task Force on Implementation of the Fiscal Responsibility and Budget Management Act, 2003 (chair: Vijay Kelkar, 2004) — https://www.indiabudget.gov.in