Bring in GST to avoid double taxation

ovision of services is obviated. As a corollary to the above position, since India currently does not yet have a uniform GST, this possibility of double taxation does exist and, in fact, constitutes a significant concern for tax-payers.  The threat of double taxation exists primarily in relation to the two taxes of service tax and VAT, one being a Central levy on the provision of services and the other being a state levy on the sale of goods. It must be stated, however, that this threat of double taxation could potentially exist in relation to other indirect taxes as well. However, the particularly close relationship between the service tax and the state VAT results in the threat of double taxation being the likeliest in relation thereto. Let us consider the reasons as to why this is the case and also as to how the problem is currently addressed, both in terms of the express provisions in law as also through any pronouncement of the Supreme Court on the point.  Both service tax and VAT are consumption taxes which are borne by the end consumers. Ostensibly, these taxes are intended to operate on a mutually exclusive basis. Service tax will apply on the provision of taxable services and the VAT will apply on the sale of goods. However, the problem is that there are no clear definitions in law of what constitutes either