The Goods and Service Tax (GST) is one indirect tax for the whole nation, which will make India one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

GST is a destination-based tax, which means it is charged where the goods are consumed, as opposed to where they are produced. It will help in removing several indirect state and federal taxes levied by local bodies. The final consumer will thus bear only the GST charged by the last dealer in the supply chain.

Introduction of a GST to replace the existing multiple tax structures of Centre and State taxes are not only desirable but imperative in the emerging economic environment. The Goods and Services Tax (GST) is a destination-based value added tax, levied at all points in the supply chain with credit allowed for tax paid on purchases used in making the supply. It would apply to both goods and services in a comprehensive manner with exemptions restricted to minimum.

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