GST is a uniform single indirect tax levied on the supply of goods and services across India. The Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Benefits of GST:
• Ease of business. A robust and comprehensive IT system will ensure easy compliance with GST regime in India.
• Uniformity of tax rates and structures
• GST will ensure system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
• Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.
• Reduce cost of locally manufactured goods and services and will increase the competitiveness of Indian goods and services in the international market.
• GST would be simpler and easier to administer backed with robust end-to-end IT system.
• GST will result in better tax compliance due to a robust IT infrastructure.
• GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.
• There would be only one tax from the manufacturer to the consumer under GST. This will result in transparency of taxes paid to the final consumer.
• Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.
We leverage our expertise in indirect tax to assist our clients in seamless transition to the GST regime. We offer following service to our clients:
• Impact assessment on the business across value chain.
• Technology assessment
• Transition to GST
• Compliance/ reporting