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Who all get benefits from GST (Goods and Services Tax), if it get passed in this monsoon session?

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Who all get benefits from GST (Goods and Services Tax), if it get passed in this monsoon session?
posted Aug 1, 2016 by Amit Kumar Pandey

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Following are benefits of GST -
1. Life gets simpler - GST will replace 17 indirect tax levies and compliance costs will fall.
2. Revenue will get a boost - Evasion set to drop. Input tax credit will encourage suppliers to pay taxes. States and Center will have dual oversight. The number of tax exempt goods will decline.
3. A common market - It's currently fragmented along state lines, pushing costs up 20-30%.
4. Logistics, Inventory costs will fall - Checks at state borders slow movement of trucks. In India, they travel 280 km a day compared with 800 km in the US.
5. Investment boost - For many capital goods, input tax credit is not available. 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% overall.
6. Make in India - Manufacturing will get more competitive as GST addresses cascading of tax, inter-state tax, high logistics costs and fragmented market. Increased protection from imports as GST provides for appropriate countervailing duty.
7. 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 opportunities for others.
8. Manufactured goods could become cheaper - Lower logistics and tax costs.
9. GDP Lift - HSBC estimates an 80 basis point rise in GDP growth over 3-5 years. NCAER pegs this at 0.9-1.7% thanks to the elimination of tax cascading.
10. Freeing up online - State restrictions and levies have complicated ecommerce. Some sellers do not even ship to particular states. All this will end with GST.

answer Aug 3, 2016 by Salil Agrawal
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