Frequently Asked Questions
What are the advantages of GST?
GST will help in allowing businesses the benefit of conducting their activities unmindful of taxes or place of manufacture or distribution chain.
The design of law will considerably reduce disallowance/restriction of input tax credits by States due to movement of goods out of the State as stock transfer, or in some cases even in case of sale in the course of inter-state trade or commerce.
GST is particularly important to provide domestic businesses a level playing field vis-à-vis imports and full refund of taxes on exports. This is possible by capturing the full impact of taxes at final stage rather than as embedded costs.
It is expected that the introduction of GST in India will result in the increase of national income by 1 percent to 1.5 percent (USD 20 – 40 billion annually) on a recurring basis.