Goods & Services Tax is a single indirect tax for the entire country, which aims at making India one unified common market. Precisely, it is a single tax on the supply of goods and services right from manufacturer to the customer. GST empowers final consumer to bear only GST (unlike multiple taxes before) in the supply chain charged by the last dealer with set-off benefits at all the previous stages. This means GST will reduce Cascading tax i.e taxes on tax.
Goods and Services Tax (GST) is an indirect tax that will be levied on manufacture, sale and consumption of goods and services. The importance of the GST is that when applicable it will abolish all indirect taxes. Hence the entire system of taxation will be simpler. GST subsumes many indirect and central levies and allows a producer to claim credit for taxes paid on all inputs, making production efficient. This is expected to reduce the cost for consumers.