Updated : June 26, 2024Advantages of GST in India
Overview : One Nation One Tax GST shall be the only tax in the entire supply chain of goods or services and thus shall subsume various taxes which was being levied since independence like Central Sales Tax, Additional Customs Duty, Purchase Tax, Luxury Tax, etc. This shall eventually result in easy tax management. Advantages of GST registration.
Lower Taxes (NO tax on Tax)
In the previous indirect tax regime, though through reforms an effort was made to remove a tax on tax, and VAT was introduced, however, there exist cases where a tax was imposed on tax. For example, the vat was applied even on excise duty. The GST system ensures a continuous flow of credit in the system.
Same Tax Rate all over India
In the erstwhile tax system, the vat rates differ from state to state, as a result the same product was having the different price for consumer due to different indirect tax being passed on to the consumer. However, under GST the tax rates shall be same across the supply chain.
