What is GST? And what are the advantages and disadvantages of GST?
Advantages of GST:It will create a harmonized system by eradication multiple layers of taxes.Due to HSN based classification, double taxation would be minimized as goods and services are being separately differentiated.Tax cascading would be solved to certain extent through input credit (ITC) mechanisms.It will create one nation, one market as there would be no state frontiers.GST law and procedures would be uniform throughout the country.Create employment opportunities and global competitiveness.Revenue leakage would be checked and compliance would be made easy now as earlier multiple compliance.It would widen tax base, easy and smooth credit would act as a boost to India's image in global economy.Ease of doing business.Disadvantages of GST:Increased compliance as registration is required in each state in which there is place of business.Increased cost for small taxpayer with regard to IT as GST backbone is its GST Network.There can be many such disadvantages but by and large, advantages overpower the disadvantages.