GST (Goods and Services Tax) is a unified indirect tax system implemented across India to replace multiple cascading taxes previously levied by the central and state governments. Introduced in July 2017, GST in India subsumed major taxes like VAT, excise duty, and service tax under a single regime, streamlining the country’s indirect tax structure.
The GST tax system works on a destination-based model and applies to the supply of goods and services at each stage of the value chain, allowing input tax credit to be claimed at every step. This eliminates the tax-on-tax effect, promoting efficiency and compliance.
