GST is consumption based tax based on Vat principle:

GST is consumption based tax based on Vat principle:

GST is consumption based tax, i.e. tax will be payable in the State in which goods and services are finally consumed. GST will be based on Vat system of allowing input tax credit for payment of tax on output supply.

The States from which goods are supplied will not get any tax as goods are consumed in another State.

In case of inter-state supplies, IGST will be payable. Input Tax Credit of IGST paid in one State will be available to receiver of goods or services in another State.