GST is a comprehensive tax levied on manufacture, sale and consumption of goods and services at a national level, under which no distinction is made between goods and services for levying the tax. Presently, tax system has 3 types of taxes excise duty, service tax and VAT. GST is a single tax replacing all the indirect taxes. But, the Constitution does not vest the power to the central or the state government to levy a single tax on goods and services. Therefore, India will adopt a dual GST, where the center and the states will simultaneously tax goods and services.
