Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-1-2016 – Benefits of GST Benefits of GST shall accrue to all – trade & industry, Government and consumers. Trade and industry shall benefit in terms of easy compliance, removal of cascading effect of taxes and enhanced competitiveness. The Government shall have better control on leakages, higher revenue efficiency, consolidation of tax base and it may be easier to administer and monitor the law. Consumers will also benefit from likely reduced prices and single transparent tax structure. GST will end cascading effects: This will be the major contribution of GST for the business and commerce. At present, there are different state level and centre level indirect tax levies that are compulsory one after another on the supply chain till the time of its final consumption. Growth of Revenue in States and Union: It is expected that the introduction of GST will increase the tax base but lowers down the tax rates and also
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eir taxation that may crop at later stages. This will help the business community to decide their supply chain, pricing modalities and in the long run helps the consumers being goods competitive as price will no longer be the function of tax components but function of sheer business intelligence and innovation. Reduces average tax burdens: Under GST mechanism, the cost of tax that consumers have to bear will be certain and it is expected that GST would reduce the average tax burdens on the consumers. Reduces the corruption: It is one of the major problems that India is overwhelmed with. We cannot expect anything substantial unless there exists a political will to root it out. This will be a step towards corruption free Indian Revenue Services. Present CST will be removed and need not to be paid. At present there is no input tax credit available for CST. There are many indirect taxes in state and central level currently, which will be included by GST. i.e. you need to pay a single GST i
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which suffers from tax considerations and operational hurdles. GST is expected to contribute to 'make in India' and 'ease of doing business in India' initiatives of the Government. GST addresses the issue of multiplicity of taxes. All the rates under to GST will be uniform for are and the place of supply rules will guide the GST India portal to apportion the tax. It will boost up economic unification of India; it will assist in better conformity and revenue resilience; it will evade the cascading effect in Indirect tax regime. In GST system, both Central and state taxes will be collected at the point of sale. Both components (the Central and state GST) will be charged on the manufacturing cost. It will reduce the tax burden for consumers; It will result in a simple, transparent and easy tax structure; merging all levies on goods and services into one GST. It will bring uniformity in tax rates with only one or two tax rates across the supply chain; It will result in a g
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