Goods and Services Tax aims to create a destination based dual regime with seamless input credit, pending political consensus.
GST is a destination based, multipoint tax unifying goods and services with input tax credit so tax 'sticks' at final consumption; India's path adopted VAT and CENVAT reforms as transitional, pragmatic steps to broaden the base, harmonise rates and build IT and institutional capacity, while the proposed dual GST model requires constitutional and intergovernmental consensus-notably on abolition of Central Sales Tax and State compensation-before full implementation. (AI Summary)