Benefits of GST

Benefits of GST

Benefit to Government

  • A unified common national market to boost Foreign Investment and “Make in India” campaign;
  • Boost to export/manufacturing activity, generation of more employment, leading to reduced poverty and increased GDP growth;
  • Improving the overall investment climate in the country which will benefit the development of States;
  • Uniform SGST and IGST rates to reduce the incentive for tax evasion.

Benefit to customer

  • Simpler tax system;
  • Reduction in prices of goods and services due to elimination of cascading;
  • Uniform prices throughout the country;
  • Transparency in taxation system.

Benefit to Trade and industry

  • Reduction in multiplicity of taxes;
  • Mitigation of cascading/double taxation;
  • More efficient neutralization of taxes especially for exports;
  • Development of common national market.

Benefits of GST – Goods and Service Tax

TAXES SUBSUME IN GST

Central taxes subsumed(a) Central Excise Duty; (b) Duties of Excise (Medicinal and Toilet Preparations); (c) Additional Duties of Excise (Goods of Special Importance); (d) Additional Duties of Excise (Textiles and Textile Products); (e) Additional Duties of Customs (commonly known as CVD); (f) Special Additional Duty of Customs (SAD); (g) Service Tax; (h) Cesses and surcharges insofar as they relate to supply of goods or services.
State taxes subsumed(a) State VAT; (b) Central Sales Tax; (c) Purchase Tax; (d) Luxury Tax; (e) Entry Tax (All forms); (f) Entertainment Tax (except those levied by the local bodies); (g) Taxes on advertisements; (h) Taxes on lotteries, betting and gambling; (i) State cesses and surcharges insofar as they relate to supply of goods or services.

Applicability of GST

Name of the Act [Sec. 1(1)]This Act may be called the Constitution (One Hundred and First Amendment) Act, 2016.
Applicability [Sec. 1(2)]It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision.

Benefits of GST – Goods and Service Tax

Kind Regards

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