What are the benefits of GST (GST Benefit)?
There are several benefits of GST for people related to different fields. GST Benefits are for everyone. Benefit of GST for Consumer, GST Benefit for Businessman. All these are covered in this single GST Benefits article.
Benefits of GST For Consumer
Less Cost of Goods and Services
Due to multiple indirect taxes being levied by the Centre and State, the cost of most goods and services in the country today are high with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to low price of Goods and Services.
Less Tax Burden on Consumer
The overall tax burden on most commodities will come down, which will benefit consumers.
Benefits of GST For Business and Industry
Ease of Doing Business
GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.
Easy and Transparent System
All tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent.
Reduce Hidden Costs
A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
Simplify Tax Structure
Reduce the hassles of filing tax forms by merchants.
Benefits of GST For Central and State Governments
Simple and Easy Administration
Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administrate than all other indirect taxes.
Better controls on leakage
GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is better controls on leakage.
Higher revenue efficiency
GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.