VAT implementation was the first step towards improvement in indirect taxes in India which showed that Government was working in right direction. After that although it take too long to implement the GST, Goods and Services Tax finally introduced by the 101^st Constitutional amendment in India from July 1, 2017. It’s really a great and biggest tax reform in India since independent. GST is a comprehensive tax system that will subsume all indirect taxes of State and Central Governments. It created the whole India a single seamless national market. GST would be applicable on "supply" of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services. GST would be based on the principle of destination based consumption taxation as against the present principle of origin-based taxation. This is the major change in indirect tax system where the revenue will be distributed among all the States on consumption basis which make each State financially independent. It would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States would be called State GST (SGST). Union territories would levy Union territory GST (UTGST). This paper will try to understand the main features of GST and how it impacted Handicrafts Industries, its challenges and suggestion for growth of Handicraft Industries.

KEYWORDS: VAT, GST, CGST, UTGST, SGST, Origin-based Taxation.