GST was described as good and simple tax by the Prime Minister when it was unveiled on 1st of July, 2017.

Actually, GST stands for Goods and Services Tax. But why it is called Goods and Services Tax? It is called Goods and Services Tax because it is for the first time in the seven decades of this country, that we are actually having a tax which is on goods and services.

Earlier, there used to be a number of taxes, there used to be excise duties which were on manufacture of goods, there used to be sales taxes which were on sale of goods, there used to be a service tax which was on services.

However, there was no single tax on all goods and services. And it is for the first time that a common tax on all goods and services has been brought about and it is called as GST.