GST (Goods and Services Tax) is an indirect tax system that was implemented in India on July 1, 2017, replacing multiple indirect taxes levied by the central and state governments. It is a comprehensive, multi-stage, destination-based tax that is levied on every value addition to a product or service.

The GST system in India is a dual system, which means that it is levied by both the central and state governments. The central GST (CGST) is levied by the central government, while the state GST (SGST) is levied by the state government. In addition, an integrated GST (IGST) is also levied on the inter-state supply of goods and services.

The GST system has brought about a significant change in the way businesses operate in India, as it has replaced various indirect taxes, such as excise duty, service tax, value-added tax (VAT), and other state-level taxes. It has simplified the tax system, reduced tax evasion, and improved compliance. The GST system has also led to the elimination of the cascading effect of taxes, which means that the tax is levied only on the value addition at each stage of the supply chain, leading to a reduction in the final cost of the product or service.