GST will make consumer goods cheaper, boost jobs: CBEC

Spelling out benefits of the Goods and Services Tax (GST), the revenue department on Monday said it will make consumer goods cheaper, increase consumption and generate more employment by enhancing economic activity.

"... (GST will) create a unified common national market for India, giving a boost to foreign investment and Make in India campaign," the Central Board of Excise and Customs (CBEC) said in an advertisement in major newspapers.

Seeking to apprise the general public of the benefits of GST for the economy, CBEC said exemption for a majority of small retailers will make "products cheaper for consumers".

Besides, the new tax regime will result in increased economic activity and generate more job opportunities.

The long-pending Constitution Amendment Bill that will pave the way for rollout of GST, a new uniform indirect tax regime, was passed by Parliament earlier this month.

GST will replace more than a dozen levies of central and state levies, including central excise, service tax and sales tax as well as VAT, to make movement of goods seamless. Instead of the goods being taxed multiple times, under the new GST set-up, goods will be taxed at the point of consumption.

GST, CBEC said, will integrate taxes, unleash growth, create a national market and ease compliance.

On advantage for the trade and industry, CBEC said it will reduce compliance cost as the assessee will not have to maintain multiple records for a variety of taxes.

"Greater use of IT will reduce human interface between the tax payer and the tax administration," it said, adding that GST will eliminate double taxation on certain sectors like works contracts, software and hospitality, among others.

The new regime will be "simpler" with a few exemptions, CBEC said.

"Average tax burden on supplies of goods and services (is) likely to come down leading to more consumption," it said further.

According to the tax department, there will be simplified and automated procedures for various processes such as registration, returns, refunds and tax payment.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel