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How will GST benefit industry, trade and agriculture ?

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Question  :   How will GST benefit industry, trade and agriculture ?

Answer:

As mentioned in Answer to Question 3, the GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST.

The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture.

Our Answer/Comment:

The intention behind the Goods and Service Tax (GST) is to simplify tax and reduce the burden of double taxation. 

 Presently to claim input on purchases and input on services covered under two  laws also. There is a burdensome over industry to maintain  input register in excise.

Also need to differentiate- Input from local purchase and from Central purchase. There is a VAT chain but upto state level.

To remove this difficulty and to simplify the forms and to cover all transactions in a single act will help businesses and trades.  

 Also Read What is the justification of GST ?

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