The government states that GST plays a crucial role in driving consumption and saving on monthly bills in the following ways: 1. Standardization and elimination of multiple taxes: GST replaces multiple taxes like VAT, central excise, and service tax with a single tax. This simplifies the tax structure and reduces the cascading effect of taxes, resulting in lower prices of goods and services. 2. Increased efficiency and transparency: GST has led to increased efficiency in the supply chain and improved compliance. This has resulted in a reduction in black money and tax evasion, leading to a more transparent economy. The elimination of check posts and the introduction of an online system have also reduced logistics costs and transport time, ultimately benefiting consumers. 3. Input tax credit: Under GST, businesses can claim input tax credit for taxes paid on purchases, which reduces their overall tax liability. This reduction in taxes for businesses can result in lower prices for consumers. 4. Better tax management: GST has streamlined tax administration and reduced the compliance burden for businesses. This has allowed businesses to focus more on their core operations and invest in providing better goods and services to consumers. Overall, the government believes that these factors have contributed to increased consumption and savings on monthly bills for households.