GST will be a dual levy in India and the eligible transactions will be subject to levy of both Central Tax and State Tax. There shall be Integrated Tax by Centre in the case of inter-State supplies and imports/ exports. Certain goods and services will be subject to a further levy of GST Compensation Cess. Supplies to or from Union Territories will also be treated as inter-State supplies. Supplies within a Union Territory without legislature will be charged to UT Tax. Certain products are out of the ambit of GST e.g. petroleum products, tobacco and tobacco products etc.
There will be a single common market with goods and services moving seamlessly in the entire country. Tax credits would be available even on inter-State supplies