GST is a/an

The Goods and Services Tax (GST) is defined as a comprehensive indirect tax levied on the supply of goods and services [1]. It is fundamentally a destination-based consumption tax, meaning the tax revenue accrues to the jurisdiction where the goods or services are ultimately consumed rather than where they are produced [3]. Under this principle, the taxable event is the 'supply' of goods or services, rendering the location of manufacture or origin irrelevant for tax collection purposes [3]. This contrasts with the previous 'origin-based' regime, such as the Central Sales Tax, where taxes were collected by the state of origin [4]. In the GST framework, for inter-state transactions, Integrated GST (IGST) is levied by the Centre and subsequently distributed to the consuming state, ensuring the tax follows the destination of the product [2].

Sources

1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 5: Government Budget and the Economy > Box 5.3: GST: One Nation, One Tax, One Market > p. 82
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Important aspects regarding implementation of GST: > p. 176
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Details about GST > p. 91
4. [4] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > Global Minimum Corporate Tax (GMCT): > p. 172