<P> Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services . GST is levied at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer . </P> <P> Goods and services are divided into five tax slabs for collection of tax - 0%, 5%, 12%, 18% and 28% . However, Petroleum products, alcoholic drinks, electricity, are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax regime . There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold . In addition a cess of 22% or other rates on top of 28% GST applies on few items like aerated drinks, luxury cars and tobacco products . Pre-GST, the statutory tax rate for most goods was about 26.5%, Post-GST, most goods are expected to be in the 18% tax range . </P> <P> The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian government . The tax replaced existing multiple cascading taxes levied by the central and state governments . </P> <P> The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of centre and all the states . GST is meant to replace a slew of indirect taxes with a unified tax and is therefore expected to reshape the country's 2.4 trillion dollar economy, but not without criticism . Trucks' travel time in interstate movement dropped by 20%, because of no interstate check posts . </P>

When did gst came into force in india