Benefits Of Gst For Business And Commerce Essay example
Benefits of GST shall accrue to all - trade & industry, Government and consumers. Trade and industry shall benefits in terms of easy compliance, removal of cascading effect of taxes and enhanced competitiveness. The Government shall have better control on leakages, higher revenue efficiency, consolidation of tax base and it may be easier to administer and monitor the law. Consumers will also benefit from likely reduced prices and single transparent tax structure.
• GST will end cascading effects: This will be the major contribution of GST for the business and commerce. At present, there are different state level and centre level indirect tax levies that are compulsory one after another on the supply chain till the time of its final consumption.
• Growth of revenue in State and Union: It is expected that the introduction of GST will increase the tax base but lowers down the tax rates and also removes the multiple point taxation. This will lead to higher amount of revenue to both the states and the union.
• Reduces transaction costs and unnecessary wastages: If government works in an efficient mode, it may be also possible that a single registration and a single compliance will suffice for both SGST and CGST provided government produces effective IT infrastructure and integration of states level with the union.
• Eliminates the multiplicity of taxation: One of the great advantages that a taxpayer can expect from GST is elimination of multiplicity of taxation.…