When GST was first introduced on June 30, 2017, it was adopted for streamlining the indirect tax structure, its rates, administration, and compliance requirements. It enclosed all the multiple taxes and Cess levied by the state and central government under the umbrella of one single tax structure by introducing GST registration process in place for establishments in India. The government decided to have a multilayer structure dividing the tax rate in brackets of 0%, 5%, 12%, 18% and 28%, to prevent the cascading effect that the previous tax structure has created.
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