Goods and Services Tax Notes
Subject Overview
Goods and Services Tax is the dedicated paper on India's biggest indirect tax reform — how GST actually works, from the constitutional background to day-to-day compliance. You'll cover the shortcomings of the pre-GST tax system and the constitutional framework, the CGST/
Subject at a glance
4
Units
28
Topics
6
Credits
4
Infographics
Unit-wise Syllabus
4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Background and concept of indirect taxes
- major shortcomings of the pre-GST era
- administration of indirect taxation in India
- basic concept and overview of GST
- need and benefits
- constitutional framework of GST
Central taxes
Central excise, service tax, additional customs duties
State taxes
VAT, entry tax, luxury tax, entertainment tax
Not subsumed
Basic customs duty, alcohol for human consumption
Study guide
GST replaced a maze of indirect taxes with one system. You study the concept of indirect taxes, the shortcomings of the pre-GST era, the administration of indirect taxation, the basic concept and overview of GST, its need and benefits and its constitutional framework. Be able to list the taxes that GST subsumed.
- CGST
- IGST
- SGST and UTGST
- concept of taxable event
- concept of supply
- composite supply and mixed supply
- provisions for levy and collection of CGST and IGST
- composition scheme
- reverse charge mechanism
Supplier and buyer
Same state
Different states
Tax charged
CGST + SGST
IGST
Collected by
Centre and state
Centre (shared with destination state)
Example
Delhi to Delhi
Delhi to Punjab
Study guide
The GST model has several taxes: CGST, SGST, IGST and UTGST. You study the taxable event, the concept of supply, composite and mixed supply, the levy and collection of CGST and IGST, the composition scheme and the reverse charge mechanism. Learn which tax applies to intra-state and inter-state supply.
- Power of granting exemptions
- basic exemptions under GST
- concept of time
- value and place of taxable supply
- input tax credit and computation of GST liability
- 1Buy inputs
Pay ₹1,800 GST on purchases
- 2Sell goods
Collect ₹3,000 GST on sales
- 3Claim credit
Set off the ₹1,800 already paid
- 4Pay the difference
Net GST payable ₹1,200
Study guide
This unit covers the power to grant exemptions, basic exemptions, the concepts of time, value and place of supply, input tax credit and the computation of GST liability. Practise computing net GST liability using input tax credit; it is the main numerical.
- Registration
- tax invoice
- debit and credit notes
- accounts and records
- electronic way bill
- provisions for filing returns
- payment of tax
- refunds
- 1Register
Get a GSTIN
- 2Invoice
Issue valid tax invoices
- 3E-way bill
For moving goods above the limit
- 4File returns
Monthly or quarterly
- 5Pay tax
Through the GST portal
Study guide
The final unit covers compliance: registration, tax invoice, debit and credit notes, accounts and records, e-way bill, return filing, payment of tax and refunds. Learn the contents of a valid tax invoice and the main returns with their due dates.
Why Goods and Services Tax Matters
GST affects every business in India, and GST knowledge is directly employable in accounting, taxation and compliance roles. GST practitioner and accountant jobs are among the most common openings for commerce graduates.
How to Prepare for Goods and Services Tax
- Practise input tax credit and GST liability computations.
- Learn the difference between CGST, SGST and IGST with an example transaction.
- Check current rates, thresholds and due dates on the official GST portal, as they are updated.
Goods and Services Tax: Frequently Asked Questions
What is the difference between CGST, SGST and IGST?
CGST and SGST are levied together on intra-state supplies and shared by the Centre and the State, while IGST is levied by the Centre on inter-state supplies and shared with the destination State.
What is input tax credit?
Input tax credit lets a registered business reduce the GST it pays on sales by the GST it has already paid on eligible purchases.