VAT was levied only on the Sale of goods in the same state. VAT Acts were different for different states and rates varied for different states as per their own VAT Law. CST was levied in case of Sale of goods to other state. GST will be levied on the supply of goods and / or services. GST will be one single tax throughout India and the rates would not vary in various states. GST will subsume existing indirect taxes like VAT, CST, Excise, Service Tax, Octroi, Entry Tax, Purchase tax, CVD, SAD etc.