Goods and Services Tax simplified India's indirect taxation by replacing cascading levies with a unified, digital compliance framework.
Traditional indirect taxation in India involved multiple central and state levies, separate compliance requirements, and a cascading tax effect that increased costs and complicated interstate trade. GST replaced most of this fragmented structure with a destination-based unified indirect tax on the supply of goods and services, supported by CGST, SGST, IGST, and the Input Tax Credit mechanism. The reform is described as simplifying compliance, improving logistics and transparency, and encouraging digital, technology-driven tax administration. (AI Summary)