VAT (Value Added Tax) and GST (Goods and Services Tax) are consumption taxes applied at every stage of the supply chain, ensuring transparency and preventing multiple taxes. They aim to shift the final tax burden to the end consumer, making revenue collection on goods and services more efficient. However, with the implementation of GST with effect from 1st July 2017 VAT on goods (excluding alcohol for human consumption, petroleum products etc) is subsumed under GST.