Benefits of GST to the Indian Economy

Benefits of GST to the Indian Economy

·         Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise.

·         Less tax compliance and a simplified tax policy compared to current tax structure.

·         Removal of cascading effect of taxes i.e. removes tax on tax.

·         Reduction of manufacturing costs due to lower burden of taxes on the manufacturing sector. Hence prices of consumer goods will be likely to come down.

·         Lower the burden on the common man i.e. public will have to shed less money to buy the same products that were costly earlier.

·         Increased demand and consumption of goods.

·         Increased demand will lead to increase supply. Hence, this will ultimately lead to rise in the production of goods.

·         Control of black money circulation as the system normally followed by traders and shopkeepers will be put to a mandatory check.

·         Boost to the Indian economy in the long run.