Question
Explain any two benefits of $GST.$
✓
Answer
$(1)$ One tax: In place of different indirect taxes of central government and state governments these taxes are subsumed in one tax only and that is $GST$.
$(2)$ Simple tax system:
(Indirect tax system becomes very simple) Due to withdrawal
(elimination) of different indirect taxes.
$(3)$ Removal of double taxation: Before implementation of $GST$, tax payers had to pay double taxes, which is removed under $GST$.
$(4)$ Benefit of price reduction: $GST$ implementation has brought price reduction in goods and services.
$(5)$ Uniform prices: Uniform price system is emerged across the nation.
$(6)$ Reduction in tax evasion: There is a reduction in size of tax evasion and tax system has got success to establish transparency.
$(7)$ Input tax credit: $GST$ paid on purchase is deducted from $GST$ payable on sale, hence net amount of $GST$ is payable by the tax payer.
$(8)$ Useful for economy: Economy of the nation gets stable.
$(9)$ Balanced regional development: Balanced development of region would take place and consequently regional imbalance would reduce.
$(10)$ Reduction in administrative work: There is significient reduction in administrative work.
$(11)$ Reduction is government operations: Another benefit of $GST$ is reduction in government operations.
$(2)$ Simple tax system:
(Indirect tax system becomes very simple) Due to withdrawal
(elimination) of different indirect taxes.
$(3)$ Removal of double taxation: Before implementation of $GST$, tax payers had to pay double taxes, which is removed under $GST$.
$(4)$ Benefit of price reduction: $GST$ implementation has brought price reduction in goods and services.
$(5)$ Uniform prices: Uniform price system is emerged across the nation.
$(6)$ Reduction in tax evasion: There is a reduction in size of tax evasion and tax system has got success to establish transparency.
$(7)$ Input tax credit: $GST$ paid on purchase is deducted from $GST$ payable on sale, hence net amount of $GST$ is payable by the tax payer.
$(8)$ Useful for economy: Economy of the nation gets stable.
$(9)$ Balanced regional development: Balanced development of region would take place and consequently regional imbalance would reduce.
$(10)$ Reduction in administrative work: There is significient reduction in administrative work.
$(11)$ Reduction is government operations: Another benefit of $GST$ is reduction in government operations.
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