Advantages of GST – Goods and Services Tax
Top 10 Advantage of Goods And Services Tax ( GST ) are as follows:-
One Nation One Tax:-
The one of the major advantage about GST in India that it is going to replace many indirect taxes like
- Central Excise Duty
- Additional Excise Duties
- The Excise Duty levied under the Medicinal and Toiletries Preparation Act
- Service Tax
- Additional Customs Duty, commonly known as Countervailing Duty (CVD)
- Special Additional Duty of Customs – 4% (SAD)
- Surcharges, and
The following State taxes and levies would be, to begin with, subsumed under GST:
- VAT / Sales tax
- Entertainment tax (unless it is levied by the local bodies).
- Luxury tax
- Taxes on lottery, betting and gambling.
- State Cesses and Surcharges in so far as they relate to supply of goods and services.
- Entry tax not in lieu of Octroi.
2. Reduce double tax effect:-
Because of Input Tax Credit seller in one state will be able to take input tax credit benefit of the supplies received from other states.
However in VAT system credit was allowed for intra-state transactions only.
3. Increase Tax Payers Volume:-
GST will work on value addition concept and it is expected that new registration will come in existence to take to benefit of Input Tax in Transaction chain.
4. Investment Booster:
It will help to bring new investments in market.
5. Bring Transparency in system
Same billing in country will help to bring more transparency in system.
6. Boost for Make in India
One tax in place of many manufacturing duties will promote dealers/suppliers to manufacture goods in India.
7. Will Create Jobs
More Investment, More Industries will create jobs opportunities.
8. Help in GDP
9. E-Commerce Boost
It will shift the burden of payment and compliance of taxes from online seller to E-commerce portal will help to bring more traders to sell their products online.
10. Fair Billing