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<h1>Input tax credit eliminating cascading taxes can reduce final tax burden under GST while broadening the tax base.</h1> GST reduces the final tax burden by eliminating cascading taxes through a continuous chain of input tax credit from producer to retailer; major central and state levies will be subsumed and inter state distortive taxes phased out. A transparent, complete set-off mechanism broadens the tax base and improves compliance, potentially allowing a lower average tax burden despite higher revenue generation.