Value Added Tax (VAT) is an indirect value added tax which was introduced into Indian taxation system on April 1, 2005. As a taxation concept, VAT replaced Sales Tax.
VAT was introduced to make India a single integrated market. On June 2, 2014, VAT was implemented in all states and union territories of India, except Andaman and Nicobar Islands and Lakshadweep Islands.
Designed to be a single, comprehensive, destination-based taxation concept that will unify the entire country in terms of how the tax is collected, GST has revolutionized the Indian taxation system.
The Goods and Services Tax (GST) intends to further eliminate the concept of “tax on tax”.
