GST Simplifies Taxation by Removing Cascading Tax Effect, Broadening Tax Base, and Reducing Consumer Costs

The burden of tax under GST is reduced by eliminating the cascading effect of taxes like CENVAT and State VAT, which previously lacked complete set-offs. GST introduces a continuous chain of set-offs from production to retail, subsuming other major Central and State taxes and phasing out CST. This transparent system broadens the tax base and enhances compliance, potentially increasing revenue and lowering the average tax burden for consumers. The final consumer benefits from reduced costs as the "tax on tax" effect is removed, leading to a more efficient taxation framework.

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