With effect from 1^stJuly 2017, GST was launched all over India, except in the state of Jammu & Kashmir. Subsequently, on 8^thJuly 2017, Jammu & Kashmir also came under the purview of GST, and the entire nation was brought under a unified indirect tax system. GST applies to all traders, manufacturers and service providers. Various taxes like Service Tax, Central Excise, State Excise, Entertainment tax and different central and states taxes are subsumed under one tax, i.e., GST. It is a tax leviable on the supply of goods or services or both, except alcoholic liquor for human consumption.

There are five products that are not presently leviable to GST. These products are petroleum crude, diesel, petrol, aviation turbine fuel and natural gas. GST will be charged on these products from such date as may be notified by the government on the recommendations of the GST Council.

GST removes the cascading effect of taxes leading to a reduction in the overall tax burden on goods and services. It has enhanced the ability of companies to compete globally, which improves the export prospect of companies. Under the GST regime, the Centre and state provide input tax credit for central and state GST. It is leviable on all supplies, whether inter-state or intra-state.