Traditionally Indian tax regime depended heavily on indirect taxes. Indirect taxes were the main source of tax revenue until tax reforms were undertaken during the nineties. The main argument put forward for heavy dependence on indirect taxes was that India's population was huge, poor, illiterate and thus the widening base of direct taxes had inherent and technical limitations. The system of indirect taxation in India is characterized by cascading, distorting tax on production of goods and services which results in hampered productivity and slow economic growth. There are various taxes in the present system, few levied by Centre and few levied by state. Thus, to remove the multiplicity of taxes and reduce the burden on the taxpayer a simple tax is the need of the hour and that is Goods and Service Tax (GST). This paper throws an insight into the Goods and Service Tax, concept, advantages, disadvantages and effect of GST on various sectors.

Keywords: GST in India, Goods and Service Tax, Tax Reform, Indirect Tax.