What are the key features of Goods and Services Tax (GST) in India
Understand the basic characteristics of GST and its impact on the Indian economy.
1. **Unified Tax System**: GST has replaced multiple indirect taxes with a single tax, streamlining the tax system in India.
2. **Input Tax Credit**: Businesses can claim credit for taxes paid on inputs, leading to the elimination of cascading tax effects.
3. **Destination-Based Tax**: Tax is levied at the point of consumption, promoting fair distribution among states.
4. **Wider Tax Base**: GST has expanded the tax base by including more businesses under its purview.
5. **Economic Growth**: By reducing tax evasion and improving compliance, GST has positively impacted the Indian economy by enhancing revenue collection.
6. **Simplified Compliance**: The online system and simplified processes have eased the compliance burden for businesses.
7. **Reduced Tax Rates**: GST aims to rationalize tax rates, making them more uniform across different industries.
Answered
a year ago