Goods and Services Tax (GST) is a system of taxation used in many countries, including India. It is a single, indirect tax that is applied to the supply of goods and services, replacing multiple older taxes like excise duty, service tax, and VAT. GST is designed to simplify the tax system, making it easier for businesses and consumers to understand and comply with tax rules.

Under GST, taxes are divided into three categories: CGST (Central GST), SGST (State GST), and IGST (Integrated GST). CGST and SGST are applied when goods and services are sold within a state, while IGST is applied to transactions between different states.

One of the main features of GST is that it works on the principle of "one nation, one tax." This means that the same tax rates apply across the country, reducing confusion and promoting fairness. Businesses can also claim input tax credit (ITC), which allows them to deduct the tax they have already paid on purchases from the tax they need to pay on sales. This avoids double taxation and reduces costs.

GST is divided into different tax slabs, such as 5%, 12%, 18%, and 28%, depending on the type of goods or services. Essential items like food grains are either exempt or taxed at a lower rate, while luxury goods attract higher rates.

Overall, GST has made tax collection more transparent and efficient. It has encouraged businesses to become more organized and improved compliance. For consumers, GST has resulted in lower prices for many products due to reduced tax burdens.

In summary, GST is a modern tax system that simplifies processes, promotes economic growth, and creates a unified market across the country.