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7 Key GST Benefits in Layman Terms





  • Simpler tax system

GST is supposedly eliminating 15+ different taxes like the Central Excise duties, VAT, service tax. This will simplify tax calculations and eventually reduce the price we pay on many goods and services.




  • International Competence

GST Would enable competitiveness of Indian products and services in the international markets and thus improve economic resistance and growth for India.

  • Cost of doing business becomes lower

GST will not be a cost to registered retailers and therefore there will be no hidden taxes. Thus, the cost of doing business becomes lower, encouraging local businesses and 'make in India' programs to increase the entrepreneurs within India.




  • No more state entry checkposts + Reduced Transportation Cost

Since there is no state specific taxes any more, all the state border checkposts are now gone for good. This way transportation costs comes down for essential goods that gets transported every day between various Indian states.

Also, ecommerce giants like Flipkart, Amazon used to file and produce different documents required by different States as per their own State laws. With GST, such complications regarding inter-state movement of goods are now relaxed and rules are now laid clearly.

  • Bikes, Cars, and many other automobiles get cheaper after GST

Thanks to GST. Common man can now get a new bike or car at a cheaper rate. This doesn't mean anyone can now buy a car or bike overnight, but the prices have certainly fallen.

  • Less number of tax departments

Since many tax levels are now removed, there will be lesser tax departments and less government spends on such resources.

  • Tax credits for businessmen

If a supplier or manufacturer paid GST on making a product, they can now use that cost as a tax credit to reduce their cost of product or service, thus enabling fairer prices for the end consumer.



Sources:
http://economictimes.indiatimes.com/news/economy/policy/the-advantages-of-gst-take-a-look-at-benefits/articleshow/53514291.cms
https://cleartax.in/s/benefits-gst
https://www.relakhs.com/gst-goods-services-tax-in-india/
https://gst.caknowledge.in/key-features-gst-benefits-gst/
http://top10wala.in/facts-about-gst-india-advantages/
http://zeenews.india.com/business/news/economy/know-the-key-benefits-of-gst-bill_1908766.html
https://www.indiafilings.com/learn/gst-advantages-disadvantages/
http://www.gstindia.com/about/

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