What is the name of India’s nationwide indirect tax launched on 1 July 2017?

India launched its nationwide Goods and Services Tax on 1 July 2017.

Usually called GST, it replaced a complicated collection of central and state indirect taxes, including service tax, central excise duty, and various state sales taxes. The reform aimed to create a more unified national market and reduce tax-on-tax effects.

India’s GST is a dual system: the central government and the states levy components of the tax. Interstate transactions are handled through the integrated GST mechanism, while local transactions can involve central and state portions.

The system uses multiple rate bands rather than one universal rate. The GST Council, composed of representatives of the Union and state governments, recommends major structural and rate decisions.