The traditionally Indian taxation system relied a lot on indirect taxes. The biggest and important source of tax revenue was indirect taxes, till tax reforms are commenced in the nineties. The major argument present for heavy dependency on indirect taxes was that the majority of the people in India were poor and so broaden base of direct taxes have inbuilt limitations. However in India the indirect taxation system is characterized by Tax cascading, Tax evasion, Complexity, Double taxation, Composite contracts, distorting tax on manufacture / production of goods and services which leads to hamper productivity and slow-paced economic growth. There were unending taxes in Indian taxation system. Some taxes were levied by the Central and rests were levied by the State. In the year 1922, India observed a standard shift in the Indian taxation system. In recent years, the government of India has attempted substantial reforms of the indirect tax calculation framework. Subsequently, to remove this diversity of taxes and to moderate the burden of the taxpayer a simple tax was required and which is how the Goods and Service Tax (GST) came into presence. The GST Bill or the Goods and Services Tax Bill, formally recognized as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, recommends a national Value added Tax has been executed from June 2016. Finally, the Goods and Services Tax (GST) came into effect from 1^stJuly, 2017. Goods and Services Tax (GST) is an extension based and a single all-inclusive tax charged on goods and services consumed in an economy. This paper throws an insight into the concept of Goods and Service Tax (GST), its need, advantages, challenges and current scenario in India.

KEYWORDS:  Indirect Tax, Goods and Service Tax (GST) in India, CENVAT, CGST.