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234 BUSINESS  STUDIES This system is regared as the most + 9 State levels) and 23 cesses of the revolutionising tax reform in the Indian Centre and the States, eliminating the taxation history. Tax apart from being need for filing multiple returns and a source of revenue for growth also assessments and rationalising the tax plays a key role in making the State treatment of goods and services along accountable to its taxpayers. Effective the supply chain from producers to taxation ensures that public funds are consumers. GST comprises Central effectively employed in fulfilling socialGST (CGST) and the State GST objectives for sustainable development. (SGST), subsuming levies previously GST is a destination-based single charged by the Central and the State tax on the supply of goods and governments respectively. GST (CGST services from the manufacturer to the + SGST) is charged at each stage of consumer, and has replaced multiple value addition and the supplier off- indirect taxes levied by the Central sets the levy on inputs in the previous and the State governments, thereby, stages of value chain through the tax converting the country into a unified credit mechanism. The last dealer in market. Among other benefits, GST is the supply chain passes on the added expected to improve the ease of doing GST to the consumer, making GST a business in tax compliance, reduce destination-based consumption tax. the tax burden by eliminating tax- The provision of availing input credit at each stage of value chain helps in on-tax, improve tax administration, avoiding the cascading effect (tax on mitigate tax evasion, broaden the organised segment of the economy tax) under GST, which is expected and boost tax revenues. The GST has to reduce prices of commodities and benefit the consumers. (refer page 252) replaced 17 indirect taxes (8 Central Some Facts about GST 1. GST aims to subsume a plethora of taxes into one single tax across the country and make goods uniformly priced across India, albeit some goods become costly and some become cheaper. 2. With the implementation of GST, luxury goods have become costlier, while items of mass consumption have become cheaper. 3. GST is not taxation at source. It is a destination tax or rather it’s a consumption tax. A product is manufactured in Tamil Nadu and travels through the country before it reaches Delhi, where the buyer or consumer pays tax for it. Both the Centre and the State have their share in this tax. 4. TheIndianGSTwillhaveamechanismofmatchingofinvoices.Inputtaxcreditof purchasedgoodsandserviceswillonlybeavailableifthetaxablesuppliesreceived bythesuppliesreceivedbythesupplier.TheGoodsandServicesTaxnetworkisa self-regulating mechanism, which not only checks tax frauds and tax evasion, but also brings in more and more businesses into the formal economy. Reprint 2026-27