TOP 10 BENEFITS OF GST (GOODS AND SERVICE TAX)

LIFE GETS SIMPLER

GST WILL REPLACE 17 INDIRECT TAX LEVIS AND COMPLIANCES COSTS WILL FALL

REVENUE WILL GET A BOOST

EVASION SET TO DROP.

INPUTTAX CREDIT WILL ENCOURAGE SUPPLIERS TO PAY TAXES.

STATES AND CENTRE WILL HAVE DUAL OVERSIGHT.

THE NUMBER OF TAX EXEMPT GOODS WILL DECLINE.

A COMMON MARKET

IT”S CURRENTLY FRAGMENTED ALONG STATES LINES, PUSHING COSTS UP 20-30%

LOGISTICS INVENTORY COSTS WILL FALL

CHECKS AT STATE BORDERS SLOW MOVEMENT OF TRUCKS.

INDIA THEY TRAVEL 280 KM A DAY COMPARED WITH IN THE US

INVESMENT BOOST

FOR MANY CAPITAL GOODS, INPUT TAX CREDIT IS NOT AVILABALE.

FULL INPUT TAX CREDIT UNDER GST WILL MEAN A 12-14% DROP IN THE COST OF CAPITAL GOODS

EXPECTED: A 6%  RISE IN CAPITAL GOODS INVESTMENT, 2% OVER ALL.

MAKE IN INDIA

MANUFACTURING WILL GET MORE CMPETITIVE AS GAT ADRESSES CASCADING OF TAX,

INTER – STATE TAX HIGH LOGISTICS COSTS AND FRAGMENTED MARKET.

INCREADSED PROTECTION FROM IMPORTS AS GST PROVIDES FOR APPROPROATE COUNTERVAILING DUTY.

  LESS DEVELOPED STATES GET A LIFT

THE CURRENT 2% INTER – STATE LEVY MEANS PRODUCTION IS KEPT WITHIN A STATE.

UNDER THE GST NATIONAL MARKET, THIS CAN BE DISPERSED, CREATING OPPORTUNITES FOR OTHERS.

MANUFACTURED GOODS COULD BECOME CHEAPER

LOWER LOGISTICS AND TAX COSTS.

GDP LIFT

HSBC ESTIMATES AND 80 BASIS POINT RISE IN GDP GROWTHER OVER 3-5 YEARS.

NCAER PEGS THIS AT 0.9 – 1.7% THANKS TO THE ELIMINATION TAX CASCADING.

FREEING UP ONLINE

STATES RESTRICTIONS AND LEVIES HAVE COMPLICTAED ECOMMERCE.

SOME SELLERS DO NOT EVEN SHIP TO PARTICULARS STATES. ALL THIS WILL END WITH GST.