Understanding GST: Dual Levy System with CGST, SGST, IGST; Exemptions and Exclusions Explained.

The Goods and Services Tax (GST) is a dual levy imposed by the Centre and States on a common tax base, comprising Central GST (CGST), State GST (SGST), and Integrated GST (IGST) for intra-state and inter-state transactions, respectively. GST subsumes various central and state taxes and applies to the supply of goods and services with certain exemptions. It categorizes supplies into taxable, exempt, inter-state, intra-state, composite, mixed, and zero-rated supplies. GST is a destination-based tax with input tax credit provisions. There are three levy methods: normal, composition, and reverse charge. Alcohol and certain petroleum products are excluded from GST.