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.
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