What Does Goods and Services Tax - GST Mean?

In India, Goods and Services Tax (GST) is a part of the proposed tax reforms that center round evolving an efficient and harmonized consumption tax system in the country. Presently, there are parallel systems of indirect taxation at the central and state levels. Each of the systems needs to be reformed to eventually harmonize them.

In Goods and Services Tax each govt. (Central and state)  will  collect the Vat, Service tax and excise duty at the point of sale to ultimate consumer and then will share the revenue between state and central according to percentage mutually defined. Goods and services attract the same rate of tax. That is the foundation of a GST.

The Person who is liable to collect Vat, service tax and excise duty will  be levied a  single rate of duty instead of  existing multiple rate of duly in one invoice and  such amount of collected duty will be deposited to govt.