Goods and Service Tax (GST) is paid by the consumers for the products or services. But the GST will be remitted to the government by the businesses who are providing you with those products and services. This GST will be included in the final price that is to be paid by the consumer and then is passed on to the government by the seller. This system is adopted across the whole country, which means a single tax rate is applied. The objective of introducing GST in India was to eliminate the tax on tax(double taxation).
The tax was paid on goods and margins at every stage of the production process in the previous tax system that was being adopted. This had translated into a higher amount of tax paid which was burdened on the end-user, where he or she ends up paying higher costs for the goods or services.