Act Explained
GST Act — Plain English
CGST, SGST, IGST, and the GST Council — what each Act does, how they fit together, and what the September 2025 rate changes mean for consumers and businesses.
Introduction
India's GST system has four main laws: CGST (centre), SGST (state), IGST (inter-state), and the UTGST (union territories). Together they replaced more than 17 indirect taxes on 1 July 2017. The GST Council, set up by constitutional amendment, recommends rates and rules that both the centre and states must follow.
Key topics
CGST Act
Central GST on intra-state supplies — supply, ITC, registration, and returns.
SGST Act
State GST on intra-state supplies — the state counterpart to CGST.
IGST Act
Integrated GST on inter-state supplies and imports — replaces the old CST system.
GST Council
Constitutional body that sets every GST rate, exemption, and rule — how it works.
GST Rate Schedule
Four slabs: 0%, 5%, 18%, 40%. The 12% and 28% slabs were abolished on 22 September 2025.
GST Exemptions
Goods and services fully exempt from GST — fresh food, education, healthcare, and more.
Sources
- CGST Act 2017
- SGST Act 2017
- IGST Act 2017
- GST Council at gstcouncil.gov.in
- GST portal at gst.gov.in
Last reviewed by FinWiz24 Research Desk.