Question

write an debate on gst in favor

Answer 1

Benefits of GST in India

For Corporate India, GST will remove the cascading effect of tax. As a result of which, double taxations will reduce as the Centre and State are working in tandem. In short, we will see crucial step towards reforming the indirect tax system in India.Another benefit is the intra-state business will be cheaper. The tax burden on logistics will reduce and become seamless as companies will have to pay a uniform tax in all states across the country.GST paves the way for India becoming a national market. For international players, this uniform tax structure on indirect tax will help in ease of doing business.The implementation of GST will also streamline the unorganized players as all stakeholders who have already paid taxes will compliance proofs to claim their set-offs. This will bring in transparency in the system.For the Government, the GST is boon that was long coming. The first benefit would be easier administration, especially as all the indirect taxes are replaced by GST.The coordination between the State and Centre will improve as there is no management of various taxes such as service tax, excise duty, etc. In addition, a robust IT infrastructure set-up will provide a smooth transfer of credit from input tax from one level to the other in the supply chain.For the consumers, who are at the end of the supply chain, will be the biggest beneficiaries, if the companies transfer the relief gain through GST to them.The consumers will not have to pay more for any goods or services as the hidden taxes are all removed in the GST. This will bring transparency in the grass root level of the supply chain