Goods and Services Tax (GST) is a single comprehensive indirect tax, operational from 1 July 2017, on the supply of goods and services from the manufacturer to the consumer. It is a destination based consumption tax with a facility for Input Tax Credit in the supply chain. It has amalgamated a large number of Central and State taxes into one system.

The GST system is an improvement over the old tax system, which imposed taxes on the total value of the commodity rather than the value added. This led to a cascading effect due to the minimal facility for utilizing Input Tax Credit. Under GST, tax is discharged at every stage of supply, and credit for tax paid at the previous stage is available for set-off, making it effectively a tax on value addition.

GST has simplified the multiplicity of taxes by standardizing laws, procedures, and rates across the country. It has reduced the cost of business operations and production, making Indian products more competitive in domestic and international markets. It facilitates the freedom of movement of goods and services, creating a common market. Compliance is easier through the online portal, which has reduced human interface and increased transparency.

Regarding its categories, the context states that under GST, there are six standard rates applied on the supply of all goods and services across the country. These rates are 0%, 3%, 5%, 12%, 18%, and 28%.