GST (Goods and Services Tax)
India's unified indirect tax on the supply of goods and services, replacing a web of state and central taxes since 2017.
Full definition
GST (Goods and Services Tax) is India's unified indirect tax system, effective from 1 July 2017. It replaced a tangled web of central and state levies, VAT, service tax, excise, octroi, entry tax, with a single destination-based tax. Every business with turnover above Rs 40 lakh (Rs 20 lakh in special states) must register for GST and file monthly returns.
For dairy and FMCG distribution, GST has specific complexities. Fresh milk is 0%, curd and paneer are 5%, butter and ghee are 12%, and flavoured beverages fall into 12% or 18%. A single invoice may mix multiple rates. Inter-state supply attracts IGST; intra-state supply attracts CGST + SGST in equal halves.
A compliant invoice-billing platform handles all of this automatically, calculating the right tax based on supply type and HSN, applying e-invoicing where required, and exporting return-ready data.
Real-world example
A distributor in Mumbai selling paneer to a retailer in Thane charges 5% GST split as 2.5% CGST + 2.5% SGST, because it is an intra-state supply.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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