India first introduced service tax in 1994 and 22 years since then service tax collections contribute almost one third of the indirect tax collections. The new name will also encompass a growing area of revenue which the earlier name never acknowledged—that of service tax. India first introduced service tax in 1994 and 22 years since then service tax collections contribute almost one third of the indirect tax collections. GST, a destination-based tax, will subsume most of the indirect taxes levied by the centre and the states like excise duty, service tax, value added tax, entertainment tax, luxury tax and entry tax. The renaming of the board also reflects the major administrative reset that the central indirect tax authority will have to bring about.

Source: Mint September 12, 2016 06:00 UTC