Goods and Services Tax

The Goods and Services Tax (GST) is a single, unified indirect tax introduced in India to replace a multitude of central and state-level taxes like VAT, Service Tax, and Excise Duty, fundamentally operating on the principle of "One Nation, One Tax." This destination-based tax is levied on the supply of goods and services, collected at the point of consumption rather than the point of origin. Its primary benefit is the elimination of the "cascading effect" , meaning tax is paid only on the value addition at each stage of the supply chain, which typically reduces the overall tax burden for the end consumer. GST is categorized into different slabs ($5\%, 12\%, 18\%, 28\%$) and includes three main components: CGST (Central GST), SGST (State GST), and IGST (Integrated GST) for inter-state transactions, all managed by the GST Council. This reform has simplified compliance, made trade seamless across state borders, and transformed India into a more cohesive common national market.