GST is a tax that we need to pay on supply of goods and services. The current tax structure does not allow a business person to take tax credits. There are lot of chances that double taxation takes place at every step of supply chain. This may set to change with the implementation of GST. Any person who is providing or supplying goods and services is liable to charge GST. It is a consumption based tax and collected on value added goods and services at each stage of sale or purchase in the supply chain. The manufacturer or wholesaler or retailer will pay the applicable GST rate but will claim back through tax credit mechanism. It is like a last- point retail tax. It is an indirect tax which means that the tax is passed on till the last stage where it is the customer of the goods and services who bears the tax . Dual system of GST

Central Goods and Service Tax : Central Excise duty, Additional Excise duty, Service tax, Additional customs Duty commonly known as Countervailing Duty and Special Additional Duty of customs.

The entire Indian market will be a unified market which may translate into lower business costs. It can facilitate seamless movement of goods across states and reduce the transaction costs of business. Companies which are under unorganized sector will come under tax regime. GST being a consumption based tax , states with higher consumption of goods and services will have better revenues. So the co operation from state governments would be one of the key factors for the successful implementation of GST. More business entities will come under the tax system thus widening the tax base. This may lead to better and more tax revenue collections.

GST has the potential to impact cash flow, pricing, working capital, supply chain and IT systems and hence provides an opportunity to transform your business. The liability for GST in India will finally on the person finally consuming the commodity. Therefore the tax liability would be payable by the end consumer. GST rollout in India has been delayed for long due to the lack of consensus among states over crucial issues such as revenue loss to the state, state government compensation structure, entry tax and tax on petroleum.