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The Goods and Service Tax (GST) is a single consolidated indirect tax which is all set to be launched on July 1, 2017 to remove tax barriers between states and create a single market. It has been finalized and introduced by GST council headed by Arun Jaitley who is the finance minister of India. It will work as a single tax and absorb all other indirect taxes including central excise duty, services tax, additional customs duty, surcharges, state-level value added tax (VAT). It is going to be imposed on all transactions happen during the entire manufacturing chain such as sale, transfer, purchase, barter, lease, or import of goods and/or services.

Goods and Services Tax is an indirect tax applicable to the financial transactions in the Indian econ0my, which has successfully replaced many other indirect taxes. On 29th March 2017, the proposal of the application of GST was passed and approved in the parliament, and it became effective from 1st July 2017. It is a multi-stage, destination-based, value-added and comprehensive law in India, which is levied on the supply of goods and services. Previously there were many indirect taxes in India, which were equally confusing for the taxpayers. GST is the easiest way to replace the taxes that existed.

Goods and Services Tax (Compensation to States) Act, 2017 was enacted to levy Compensation cess for providing compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Central Goods and Services Tax (CGST).

Central Board of Indirect Taxes & Customs (CBIC) has issued Notification No. 01/2019- Central Tax (Rate) dated 29th January, 2019, to rescind Notification No. 8/2017- Central Tax (Rate) dated 28th June, 2017, last amended vide notification No.22/2018-Central Tax (Rate), dated the 6th August, 2018 which defers the payment of central tax on reverse charge basis by the registered person for intra-state supplies received from unregistered person.

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