The much awaited Goods and Service Tax was proposed to be introduced on 1st April 2010 by the Finance Minister. However, the deadline of April 1, 2010 is likely to be missed due to differences among states and the Center over various aspects of GST. The principal broad based consumption taxes that the GST would replace are the CENVAT & the Service Tax levied by the center and VAT levied by the states. All these are multi stage Value added taxes.

The author describes what GST is and its effect on consumers.