What are the advantages & objectives …

Advantages of good and services tax(GST)

• Increase in government revenue.
• The cost of doing business will significantly reduce.
• There will be huge reduction in manufacturing cost of products.
• GST will remove 17 indirect tax levies.
• Logistics cost will see a huge dip due to less checks at state borders and no state taxes. In India a truck carrying goods move 280 km a day while compared to US’s 800 km.
• Many businesses create warehouses in different states due to difference in tax rates but now with GST the difference between states will vanish.
• It will give a boost to India which can be as much as 2% increase in growth rate.
• The GST Network (GSTN) is designed to capture all transaction details up to invoice level. Hence, you can’t escape the inputs or services used in providing the goods or services. Earlier traders didn’t print the invoices as it helped to reduce some burden on them but now they will not be able to that.
• GST will be monitored by both state and central government officers so there are very little chances of escaping from paying the taxes.