TaxTMI 
TaxTMI 
Sir,
Please provide the details about the merits and demerits of Goods and Services Tax provisions.
Ramakrishnan.T.H
Palakkad
merits and demerits of GST
20 Feb 2016 
10 Replies 
4845 Views Asked by
Single law GST implementation promises seamless input tax credit and simplified compliance but raises transitional compliance costs and industry uncertainties.
A unified GST regime would replace multiple central and state laws, enabling seamless input tax credit, simplified compliance and assessment, reduced classification disputes, and uniform procurement costs, yielding long term efficiency gains. Short term risks include higher compliance costs for businesses, implementation confusion, possible inflationary effects, and sectoral complications where certain products remain outside GST, creating uncertainty over input tax credit and coexistence with legacy laws. (AI Summary)
A unified GST regime would replace multiple central and state laws, enabling seamless input tax credit, simplified compliance and assessment, reduced classification disputes, and uniform procurement costs, yielding long term efficiency gains. Short term risks include higher compliance costs for businesses, implementation confusion, possible inflationary effects, and sectoral complications where certain products remain outside GST, creating uncertainty over input tax credit and coexistence with legacy laws. (AI Summary)