Sardar....
There are two types of taxes one is Direct (Example Income tax) and other is in-direct. In-direct taxes are the ones that a person as a buyer of a product or service pays to seller or service provider who in turn files back these taxes to the government. examples of these are VAT, Sales tax etc.
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Now in India, such a tax is levied by both Central and sate governments. Goods and Services Tax (or GST) proposes to change this by having a single tax only enveloping all gamuts of goods and services. The idea behind this is to have a simplified tax structure so that its becomes easier for a seller (& user) to file taxes and at the same time increasing the sphere of tax collection and hence tax collection itself. For business it will helpful by removing the complex taxation mechanism and hence help in ease of conducting business.
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In India, this was was proposed by Vajpayee Government and has since been in discussion. States have an objection as they want a proper share of tax amount which government is considering actively.
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When implemented, this value would be something around 18%. As of now more than 150 countries have such a tax regime including our neighbor Pakistan.
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