Request for Demo










GST Benefits


GST Benefits

GST has been envisaged as a more efficient tax system, neutral in its application and attractive in distribution.
The benefits of GST are:
- Wider tax base, necessary for lowering the tax rates and eliminating classification disputes
- Elimination of multiplicity of taxes and their cascading effects
- Rationalization of tax structure and simplification of compliance procedures
- Harmonization of state and central tax administrations, which would reduce duplication and compliance costs
- Automation of compliance procedures to reduce errors and increase efficiency
Destination principle
GST structure would follow the destination principle. Accordingly, imports would be subject to GST, while exports would be zero-rated. In the case of inter-State transactions within India, the State tax would apply in the State of destination as opposed to that of origin.
Taxes to be subsumed
GST would replace most indirect taxes currently in place such as:
Central Tax State Tax
Central tax Excise Duty including additional excise duties, excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 Value Added Tax
Service tax Octroi and Entry Tax
Additional Customs Duty (CVD) Purchase Tax & Luxury Tax
Special Additional Duty of Customs (SAD) Taxes on lottery, betting & gambling & State cesses and surcharges
Central Sales Tax ( levied by the Centre and collected by the States) Entertainment tax (other than the tax levied by the local bodies)
Central surcharges and cesses ( relating to supply of goods and services) Central Sales Tax ( levied by the Centre and collected by the States)