GST is considered as an indirect tax for the whole nation
that would make India one unified common market. It is a tax which is
imposed on the sale, manufacturing and the usage of the goods and services. It
is a single tax that is imposed on the supply of the goods and services, right
from the manufacturer to the customer. The credits of the input taxes that are
paid at each stage will be available in the subsequent stage of value addition
which makes GST essentially a tax only on the value addition on each
stage. The final consumers will bear only the tax charged by the last dealer in
the supply chain with the set of benefits that are at all the previous stages.
It is charged at the national and state level at
similar rates for the same products and it also replaces almost all the current
indirect taxes that are imposed separately by the Centre and the States. Goods
& Services Tax is a destination based tax which
means that the tax is paid at the place of supply
Some of the State taxes that will be subsumed
under GST are –
Key features:-