The Goods and Services Tax or GST as it is referred to, is a type of indirect tax which has replaced various other previous indirect taxes such as VAT, Service Tax, Central Sales Tax, Excise Duty, etc. This multi-stage tax regime of GST came into effect on 1st July, 2017 after passing of the Goods and Services Tax Act in the Parliament on 29th March, 2017.
Goods and Service Tax (GST) is imposed on supplying of certain Goods and Services to constrain the cascading effect of various other indirect taxes across the country. With the application of GST the concept of “ONE NATION, ONE TAX” was established with a sole domestic indirect tax law being applicable in the entire country. Goods and Services Tax Law in India is a comprehensive, based on Dual model, multi-stage, destination-based tax that is levied on every value addition.