Sales Tax is a government-imposed tax on the sale of goods and services, usually collected at the point of sale.
The seller collects sales tax from customers and remits it to the government. Unlike GST, sales tax is usually applied only at the final sale stage and does not have an input tax credit mechanism. The tax rate varies depending on the location and type of goods or services.
The purpose of the Sales tax is to serve as a revenue source for local and state governments, funding public services such as infrastructure, healthcare, and education.