Why in news? 

• India marks the 8th anniversary of the Goods and Services Tax (GST), which was rolled out on 1st July 2017 as a major tax reform.  

About Goods and Services Tax (GST)

• One Nation, One Tax: GST replaced various indirect taxes like excise duty and service tax, unifying them under a single tax system. 
• Dual Tax Structure: GST includes Central GST (CGST) and State GST (SGST) for intra-state transactions. For inter-state trade, Integrated GST (IGST) is levied by the Centre and later distributed to the concerned state. 
• Destination-Based Tax: GST is charged at the point of consumption, meaning tax revenue goes to the destination state. 
• Tax Rates (Slabs): GST has five tax slabs – 0%, 5%, 12%, 18% and 28%. 
• Governance and Technology: The GST Council makes major policy decisions, while the GST Network (GSTN) manages the IT infrastructure through the GST portal.

Legislative Basis of GST in India

• Introduction of GST Bill: The GST Bill was first introduced in 2014 as the Constitution (122nd Amendment) Bill. 
• Enactment: It was passed in 2016 and became law as the Constitution (101st Amendment) Act, 2016. 
• Key Provisions 
  • Central GST (CGST) covers excise duty, service tax, etc. 
  • State GST (SGST) includes VAT, luxury tax, etc. 
  • Integrated GST (IGST) applies to inter-state trade and is a mechanism to coordinate state and central taxes. 
• Constitutional Provision – Article 246A: Grants states the authority to tax both goods and services.