GST (Goods & Tax services): benefits and features

Major features of GST (Goods & Tax Services)

GST is a single taxation system that will reduce the number of indirect taxes. From now, a single taxation term would cover all of those indirect taxes.

The Prices of products and services would reduce, thus this system would prove to be beneficial for the people who are fed up with paying high prices.

This would reduce the burden on the state and the central government. With the introduction of GST, all indirect taxes would come under a single roof.

GST would not be charged at every point of sale like other indirect taxes so, in this way, the market would be developed.

Corruption-free taxation system. GST would introduce a corruption-free taxation system.

Uniform tax rate throughout the country (no discrimination)

The tax amount will directly go to the Central Government instead of the State Government

It will replace all major indirect taxes such as service tax, VAT, entertainment tax, luxury tax etc

It will reduce the flow of the black economy in the country.

It will provide a major source of revenue to the government.

Since there will be one tax from the manufacturer to the customer it will help in providing transparency to the taxes paid to the final consumer.

It will lower down the overall tax burden on most of the commodities

It will decrease the secret cost and transaction cost of doing business by minimizing the cascading of taxes. Cascading of tax is a situation where tax is levied on good at each stage of the production process up to the point of being sold to the final customer.

GST increase ease and convenience of doing business by making it a neutral in-country tax, regardless of any choice of place to run a business.

Easy and transparent compliance as all taxpayer services including registration, payment, returns, and more would be easily and instantly accessible to them online.