What are the Major Benefits of GST?

With the aim to make India a unified common marketplace with common tax rates and procedures, the Goods and Services Tax paves the way for an integrated economy at the national level. It subsumes almost all the State as well as Central taxes into a single tax, mitigating the ill effects of cascading and enhancing competitiveness of businesses. The tax is also anticipated to bump up GDP by approximately 2%. Let’s have a look at major benefits of GST.

  1. Elimination of Multiple Taxes

The biggest advantage of GST is that it subsumes most of the indirect taxes being levied nationally. Thus, it abolishes the ‘tax on tax’ effect which has been plaguing the entire supply chain and increasing costs for the end user. This will also give a major boost to the Government’s ‘Make in India’ campaign as goods that are manufactured or supplied in the country will be competitive not only in national markets, but in the international ones too. The Integrated Goods and Services Tax (IGST) will be levied on all imported goods. IGST means State GST plus Central GST, bringing uniformity in taxation on both local as well as imported goods.

  1. Ease of Business Setup

The Goods and Services Tax comes with a unique ‘one country, one tax’ concept that can make the business setup process easy and straightforward. This will be beneficial to do interstate business, preventing unhealthy competition among states. GST is anticipated to bring buoyancy to the Government Revenue by expanding the tax base and enhancing the taxpayer compliance. The tax is likely to provide a major lift to India’s ranking in the Ease of Doing Business Index.

  1. Less Bureaucracy

The new tax system offers less bureaucracy. Now, you don’t have to pay bribe to any tax officer. You can check your details and pay your tax online in just few clicks. It brings more transparency to indirect tax laws, making the economics and tax value of supplies easily distinguishable. All in all, it helps the industry to take credit and the government to validate the precision of taxes paid and the consumer to know the exact amount of taxes paid.

  1. Improvement in Economy

One of the major GST benefits is that it provides more taxpayers to government by lowering the cost of goods and services. Called as the biggest reform in Indian indirect tax system, the Goods and Services Tax causes an increase in manufacturing processes and improvement in exports and investments. Now, the government provides more facility with the high-budget product in the well-being of Indian citizens in many different ways. Thus, it’s a win-win situation for both the country and citizens.

  1. Less Price Product

For a common man, GST tax applicability means the removal of double charging in the system. With the introduction of this new tax, the money mind game has been ended. It lowers the price of goods and services, helping common man to save more money. On the business front, it give businesses a national platform to grow with a rapid pace.