Tax applied to the purchase and sale of goods and services of any kind, physical or electronic, resulting in a tax that is higher than the actual price of the goods or services, known as goods and services tax. service. A goods and services tax is a consumption-based tax based on the final place where the final good or service is consumed. From production to consumption of the final good or service, GST is charged at each stage, but only on the additional value added at each stage.