Goods and Services Tax (GST) is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. Here’s a brief overview:

1. Unified Tax System: GST integrates multiple indirect taxes into a single tax, simplifying the tax structure and reducing the cascading effect of taxes.

2. Multi-Stage Tax: GST is applicable at each stage of the supply chain, from production to the final sale to consumers. Tax is collected on the value added at each stage.

3. Destination-Based Taxation: GST is collected at the point of consumption rather than the point of origin. This means that the tax revenue goes to the state where the goods or services are consumed.

4. Input Tax Credit (ITC): Businesses can claim credit for the taxes paid on inputs, which helps in avoiding tax on tax and promotes the “tax on value addition” principle.

5. Dual GST Structure: In countries like India, GST is split into Central GST (CGST), State GST (SGST), and Integrated GST (IGST) for inter-state transactions. This ensures that both the central and state governments get their share of revenue.

6. Tax Rates: GST has different slabs or rates depending on the type of goods or services. These rates are generally classified into categories like standard rate, reduced rate, and zero rate.

7. Compliance: Businesses need to file GST returns periodically, detailing their sales, purchases, and tax liabilities. Compliance requirements may vary based on the country and size of the business.

Benefits:

• Simplicity: Streamlines the tax system by consolidating various taxes.
• Transparency: Reduces tax evasion and improves tax compliance.
• Efficiency: Encourages better tax administration and reduces the overall tax burden on consumers.