Goods & Service tax is proposed indirect tax in India. GST arose from:-
a) The need to cut down multiple indirect taxes such as excise duty, VAT, Octroi, Entry Tax, Luxury tax etc and have a uniform indirect tax across the country.
b) The need to reduce the impact of taxes being imposed on taxes and thereby limit the overall inflationary impact on the common man.
c) The need to create a single common market by eliminating distortion caused by varying tax rates in different states.
d) The need to have a destination based consumption tax.
Read more about GST at WeP GST Blog. #GSTSimplified