GST is one indirect tax for the whole nation, which will make India one unified common market.GST is on supply of goods and services rather than on production, trading or service rendered. It is destination based tax i.e. it is taxable in state in which goods or services are consumed.
It is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage.
The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. Presently most of the items are levied at 40%-50% tax rates but due to introduction of GST flat tax rate shall be
applicable which will reduce tax burden on consumers.