Goods and Service Tax is a value added tax to be implemented in India. GST is to replace the existing taxes like excise duty, service tax and sales tax. It aims at creating unified market in the country which will benefit the corporate and economy. Further it aims at eliminating the cascading effects of the existing tax structure. GST will be implemented parallel by central and state government as CGST and SGST respectively. This article highlights the background, objectives of GST and proposed model of GST in India. Further it deals with the challenges and prospects associated with the implementation of GST. Finally the articles draw out the conclusion that GST is beneficial to the government and stakeholders. It is helpful in avoiding tax evasion, improves tax collection and compliances. It reduces the cost of goods and services and creates a supportive environment for international trade, thereby helping in revenue generation leading to the increase in the GDP of the country. It has great prospects in favor of the nation followed by the challenges too. Finally, it is said that government have both the side of the coin like challenge and opportunity. But, it is not an easy task for the government to consider the prospects, without facing challenges. This will prove a milestone in the history of indirect tax reform. It is said that government have both the side of the coin like challenge and opportunity. But, it is not an easy task for the government to consider the prospects, without facing challenges.