GST Definition: What It Is, How It Works, and What You Need to Know

When you buy anything—from a cup of coffee to a new phone—you’re paying GST, Goods and Services Tax, a unified indirect tax applied across India on most goods and services. Also known as value-added tax, GST replaced a messy patchwork of state and central taxes like VAT, excise, and service tax. It’s designed to simplify how businesses collect and pay taxes, and to make prices more transparent for consumers.

But GST isn’t just a number on your receipt. It’s a system that connects sellers, buyers, and the government through digital filing and tracking. If you run a small business, you need to know about GST registration, the process of getting a unique GSTIN number to legally collect and report GST. If you’re a business owner, you’re likely dealing with GST claims, the ability to offset taxes you paid on purchases against taxes you collect from customers. And if you’ve overpaid or made an error, you might be eligible for a GST refund, a return of excess tax paid after proper documentation and filing. These aren’t abstract ideas—they’re daily realities for millions of Indian businesses.

Some people think GST only affects big companies. It doesn’t. Even a local shop owner selling snacks, a freelance designer, or a small e-commerce seller needs to understand GST rules. The system has different slabs—5%, 12%, 18%, and 28%—depending on what you sell. Certain essentials like rice, milk, and books are exempt. Others, like luxury cars or tobacco, carry higher rates. And while filing GST returns can feel overwhelming, the process is mostly digital now, with tools built into the GST portal to guide you.

What you’ll find in the posts below are real, practical answers to the questions people actually ask: How do you claim input tax credit without getting flagged? What happens if you miss a return deadline? Can you get a refund if you paid GST on something that turned out to be exempt? These aren’t textbook explanations—they’re fixes, warnings, and shortcuts from people who’ve been through it. Whether you’re just starting out or trying to fix a mistake, the guides here cut through the noise and show you exactly what to do next.