Pointing to the various benefits of the Goods and Services Tax (GST), the Central Board of Excise and Customs (CBEC), a part of department of revenue has said that GST will make consumer goods cheaper, increase consumption and generate more employment by enhancing economic activity. Further it said that exemption for a majority of small retailers will make products cheaper for consumers.
GST will replace more than a dozen levies of center and state, including central excise, service tax and sales tax as well as VAT, to make movement of goods seamless. Under the new GST set-up, goods will be taxed at the point of consumption, instead of the goods being taxed multiple times. And it will eliminate double taxation on certain sectors like works contracts, software and hospitality, among others. CBEC has said that average tax burden on supplies of goods and services are likely to come down leading to more consumption.
CBEC further said that GST will integrate taxes, unleash growth, create a national market and ease compliance. On advantage for the trade and industry, it will also reduce compliance cost as the assessee will not have to maintain multiple records for a variety of taxes. The new tax regime will be simpler with a few exemptions and result in increased economic activity and generate more job opportunities. It also said that GST will create a unified common national market for India, giving a boost to foreign investment and Make in India campaign.