The GST is basically an indirect tax that brings most of the taxes imposed on most goods and services, on manufacture, sale and consumption of goods and services, under a single domain at the national level. In the present system, taxes are levied separately on goods and services. The GST is a consolidated tax based on a uniform rate of tax fixed for both goods and services and it is payable at the final point of consumption. At each stage of sale or purchase in the supply chain, this tax is collected on value-added goods and services, through a tax credit mechanism.
The proposed model of GST and the rate.A dual GST system is planned to be implemented in India as proposed by the Empowered Committee under which the GST will be divided into two parts:
State Goods and Services Tax (SGST)
Central Goods and Services Tax (CGST
Both SGST and CGST will be levied on the taxable value of a transaction.