- Most important indirect tax reform since independence.
- Subsumed 17 Central and State indirect taxes.
- One indirect tax on supply of goods and services for the whole nation.
- Made India one unified common market.
- Consists of Central GST (CGST) and States GST (SGST).
- Integrated GST (IGST) levied on inter-State sales.
- Based on value-added tax principle.
- Input Tax Credit mechanism prevents cascading effect.
- GST Council makes recommendations on rates, exemptions, etc.
- Electronic Way Bill (e-way bill) for goods movement.
- Composition levy for small businesses.
- GST Compensation Cess to states for revenue shortfall.