It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

The tax came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the Indian Government. The tax replaced existing multiple Central and State Government taxes.

The tax rates, rules and regulations are governed by the GST Council which consists of the finance minister of central and all the states. GST is meant to replace indirect taxes with a unified tax and is therefore expected to reshape the country's 2.4 trillion dollar economy. GST tax rates vary from 0% - 28% depending on the type of service or Nature of Goods.

GST was introduced in the year 2017 on 1st July, for the purpose to reduce the multiple taxes and build up a uniform tax in India. GST is segregated in four different types such as ;

1. IGST (Integrated Goods and Services Tax)

2. UTGST (Union Territory Goods and Services Tax)

3. CGST (Central Goods and Services Tax)

4. SGST (State Goods and Services tax)

GST registration is necessary for every taxpayer who will fall under GST criteria