The salient features of GST under model GST law is as follows:

(a) Supply based tax: GST is applicable on ‘supply’ of goods or services as against the previous concept of tax on the manufacture of goods or sale of goods or provision of services.

(b) Desination based consumption tax: GST is destination based tax. This implies that all SGST(or UTGST) collected will ordinarily accrue to the state (or Union Territory)where the consumer of the goods or services receives supply.

(c) Dual GST: Both Centre and States simultaneously have the power to impose GST across the entire supply chain. Centre would levy and collect Central Goods and Service Tax (CGST) and States would levy and collect State Goods and Service Tax (SGST) on all supplies within a State.

(d) Inter state supplies and IGST mechanism:

The centre would levy and collect the Integrated Goods and Service Tax (IGST) on

- All inter state supply of goods and services in India 

- Inter state stock transfers of goods 

- Import of goods/services 

- Export of goods/services

(e) Replacement of existing taxes: Various central taxes like Central Excise Duty, Additional Excise Duty, service tax etc. and State taxes like VAT/ sales tax, Entertainment tax, octroi and entry tax, luxury tax etc. have been subsumed under GST.

(f) Tax slabs of GST: GST rates have been categorized under five tax slabs i.e. 0%, 5%, 12%, 18% and 28%.

(g) Input tax credit: The basic concept of GST is based on providing the set-off for the tax paid on the inputsused and this is given effect through the concept of input tax credit.

(h) Threshold limit: The threshold limit for registration under GST is Rs. 20 lakhs (Rs. 10 lakhs for north eastern states).