GST, or Goods and Services Tax, is a single tax system that applies to the sale of goods and services. It simplifies the tax structure by replacing multiple indirect taxes, making it easier for businesses to comply with tax regulations. GST is typically charged at each stage of the supply chain, from production to sale, ensuring that tax is paid only on the value added at each step. GST is designed to create a unified market by eliminating the cascading effect of taxes, where tax is levied on tax. This system helps reduce the overall tax burden on consumers and promotes transparency in the taxation process.