Goods and services tax

India's tax on the supply of goods and services, introduced in July 2017 to replace a web of central and state taxes. It is charged at each stage of production and sale, and each business deducts the tax it paid on its inputs, so the tax ends up resting on the final consumer.

A manufacturer selling goods worth ₹1,000 at an 18% rate charges ₹180 of tax. If it paid ₹90 on its inputs, it remits only ₹90 to the government. Rates are set by the GST Council of central and state ministers; from September 2025 most goods fall into two main slabs of 5% and 18%, with a higher rate for a small set of luxury and harmful goods.

For company analysis, tax collected isn't revenue: Indian statements show revenue net of it. Monthly collections are also a widely watched indicator of economic activity.

Check the dates of rate changes before you compare growth.