Advantages of GST

[Guest]

Dear Sir, Please give us some advantges of GST for busines entities that will be different and very important from general advantages.Thanks & regards

[Mahir S]

Advantages of GST :

1. GST is a transparent Tax and also reduce numbers of indirect taxes. With GST implemented a business premises can show the tax applied in the sales invoice. Customer will know exactly how much tax they are paying on the product they bought or services they consumed.

2. GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower. This in turn will help Export being more competitive.

3. GST can also help to diversification of income sources for Government other than income tax and petroleum tax.

4. Under Goods and Services Tax, the tax burden will be divided equally between Manufacturing and services. This can be done through lower tax rate by increase Tax base and reducing exemptions.

5. In GST System both the Central GST and State GST will be charged on manufacturing cost and will be collected on point of sale. This will benefit people as prices will come down which in turn will help companies as consumption will increase.

6. Biggest benefit will be that multiple taxes like octroi, central sales tax, state sales tax, entry tax, license fees, turnover tax etc will no longer be present and all that will be brought under the GST. Doing Business will be easier and more comfortable as various hidden taxation will not be present.

AI Summary

Goods and Services Tax increases tax transparency and streamlines indirect levies, simplifying compliance and lowering consumer prices. Goods and Services Tax consolidates multiple indirect levies into a single, transparent tax shown on sales invoices, removing hidden taxes for registered retailers and lowering the cost of business. By broadening the tax base and applying Central GST and State GST at point of sale, GST aims to equalise tax burden between manufacturing and services, reduce consumer prices, boost export competitiveness, and simplify compliance by subsuming taxes such as octroi and sales taxes.