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GST characteristics and advantages

Answer» GST Advantages\tGST is a transparent tax and also reduce number of indirect taxes.\tGST will not be a cost to registered retailers therefore there will be no hidden taxes and and the cost of doing business will be lower.\tBenefit people as prices will come down which in turn will help companies as consumption will increase.\tThere is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa.\tSeparate taxes for goods and services, which is the present taxation system, requires division of transaction values into value of goods and services for taxation, leading to greater complications, administration, including compliances costs.\tIn the GST system, when all the taxes are integrated, it would make possible the taxation burden to be split equitably between manufacturing and services.\tGST will be levied only at the final destination of consumption based on VAT principle and not at various points (from manufacturing to retail outlets). This will help in removing economic distortions and bring about development of a common national market.\tGST will also help to build a transparent and corruption free tax administration.\tPresently, a tax is levied on when a finished product moves out from a factory, which is paid by the manufacturer, and it is again levied at the retail outlet when sold.\tGST is backed by the GSTN, which is a fully integrated tax platform to deal with all aspects of GST.


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