--- title: "What is GST law?" description: "What is GST law?" author: "Hemant Patel" published: 2017-11-13 canonical: https://answers.mindstick.com/qa/30479/what-is-gst-law category: "indian economy" tags: ["gst", "current affair"] reading_time: 2 minutes --- # What is GST law? What is [GST](https://www.mindstick.com/articles/13121/gst-good-for-taxpayers-bad-for-government) [law](https://www.mindstick.com/articles/44257/the-impact-of-social-media-on-lawsuits)? ## Answers ### Answer by UTKARSHA SINGHROUL **GST is an Indirect Tax which has been put forward to make a replacement for many Indirect taxes in India**. GST absorbed Central Excise Law, [Service Tax](https://answers.mindstick.com/qa/38377/high-court-of-which-state-ruled-that-no-service-tax-can-be-levied-on-the-purchase-of-flats-in-an-under-construction-building-in-a-housing-project), State VATs, Entry Tax, Luxury Taxes, Octroi, and other taxes as well. Similarly, on service fields the taxes were Service Tax, [Entertainment](https://yourviews.mindstick.com/view/316/cartoons-are-way-more-than-just-an-entertainment) Tax, Luxury Tax, and other, all these taxes are summed up under a single tax i.e. GST. ![What is GST law?](https://answers.mindstick.com/questionanswer/0ca49fa8-b7ac-4429-9773-52585e71cc23/images/b362d163-0e47-4841-8552-d979b034e0e5.jpeg)\ \ **GST stands for “Goods and Services Tax”**. **GST tax slab has been divided into five different tax slabs, i.e. 0%, 5%, 12%, 18%, and 28%**. However, few products have been **excluded from GST are [Petroleum](https://answers.mindstick.com/qa/45218/who-is-the-minister-of-petroleum-and-natural-gas-independent-charge-ministry) Products, Alcoholic Products, and [Electricity](https://answers.mindstick.com/qa/31480/which-is-the-highest-electricity-producing-dam-in-india)**. On these products are taxes are levied under the individual [State Governments](https://answers.mindstick.com/qa/34109/which-state-government-has-launched-shakti-app-for-women-s-safety-in-the-state) as per the previously existing taxation policy. Being a multi-staged tax imposition, the GST has been designed in such a way that the taxes get refunded to all the parties at the different stages of the [production](https://answers.mindstick.com/qa/43158/how-did-the-mass-production-of-cars-affect-the-american-economy) to the final stage of Consumption or the Consumer. Being a destination tax, GST is collected from people while at the point of consumption of the product not at the initial stage like it was in the previous taxation policy. \ The **GST Taxation policy came into effect on July 1, 2017, under the 101st [Amendment](https://answers.mindstick.com/qa/40607/how-did-the-court-defend-the-application-of-the-first-amendment-to-the-states) of the [Constitution of India](https://answers.mindstick.com/qa/44796/constitution-of-india-came-into-effect-from) by the [Government of India](https://yourviews.mindstick.com/view/276/performance-of-government-in-the-center)**. The multi-stage change of hands for the single product allows multiple times tax over each changeover of the product through along its Supply chain; from the raw material to the final sale of the product to the product. The different phases of tax over a products changeover could be like in this manner: - Purchase of Raw Material, - Production Phase, - Warehousing or Storing the finished product, - Sale to the Wholesaler, - Sale of the product to the Retailer from the Wholesaler, - Sale of product to the Final [Consumer](https://answers.mindstick.com/qa/40479/how-did-the-teapot-dome-scandal-reflect-the-consumerism-of-the-1920s) hands. --- Original Source: https://answers.mindstick.com/qa/30479/what-is-gst-law Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.