How will GST benefit industry, trade and agriculture ?
Question : How will GST benefit industry, trade and agriculture ?
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.
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.
- What is the justification of GST?
- What is GST? How does it work?
- How can the burden of tax, in general, fall under GST?
- How will GST benefit industry, trade and agriculture?
- How will GST benefit the exporters?
- How will GST benefit the small entrepreneurs and small traders?
- How will GST benefit the common consumers?
- What are the salient features of the proposed GST model?
- Why is Dual GST required?
- How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
- Which Central and State taxes are proposed to be subsumed under GST?
- What is the rate structure proposed under GST?
- What is the concept of providing threshold exemption for GST?
- What is the scope of composition and compounding scheme under GST?
- How will imports be taxed under GST?
- Will cross utilization of credits between goods and services be allowed under GST regime?
- How will be Inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method?
- Why does introduction of GST require a Constitutional Amendment?
- How are the legislative steps being taken for CGST and SGST?
- How will the rules for administration of CGST and SGST be framed?