The benefits of GST can be summarized as under:
For business and industry
o Easy compliance: A robust and comprehensive IT
system would be the foundation of the GST regime in
India. Therefore, all tax payer services such as
registrations, returns, payments, etc. would be
available to the taxpayers online, which would make
compliance easy and transparent.
o Uniformity of tax rates and structures: GST will ensure
that indirect tax rates and structures are common
across the country, thereby increasing certainty and
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ease of doing business. In other words, GST would
make doing business in the country tax neutral,
irrespective of the choice of place of doing business.
o Removal of cascading: A system of seamless tax-credits
throughout the value-chain, and across boundaries of
States, would ensure that there is minimal cascading of
taxes. This would reduce hidden costs of doing
business.
o Improved competitiveness: Reduction in transaction
costs of doing business would eventually lead to an
improved competitiveness for the trade and industry.
o Gain to manufacturers and exporters: The subsuming
of major Central and State taxes in GST, complete and
comprehensive set-off of input goods and services and
phasing out of Central Sales Tax (CST) would reduce
the cost of locally manufactured goods and services.
This will increase the competitiveness of Indian goods
and services in the international market and give boost
to Indian exports. The uniformity in tax rates and
procedures across the country will also go a long way in
reducing the compliance cost.
