GST – 5 Essential Benefits to Customers


The GST is an indirect tax on goods and services in India. It provides a lot of advantages for Indian consumers because it combines multiple taxes into one. It is critical to understand that Goods & Service Tax is a tax that consumers do not pay directly to the government. They pay the suppliers or sellers. The government then receives it from these manufacturers and dealers.

Apart from customs, GST has replaced a variety of indirect taxes in India, including Service Tax, VAT, Excise, and several others. The sole reason for this was to consolidate all indirect taxes into a single tax, resulting in “ONE COUNTRY, ONE TAX SYSTEM.” The former indirect tax scheme had various flaws and restrictions, forcing the government to alter it.

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For instance, if you have ever gone out to see a movie, dine with friends, or buy groceries. You have probably seen that we all have to pay taxes on these products and services. This is referred to as an indirect tax. Of course, manufacturers and businessmen pay this tax, but we “customers” bear the cost of the burden. Because the customer is the final link in the supply chain and the end-user of such products and services, it is critical to understand how GST would benefit them.

Since its inception, the GST has been roundly panned. However, the average person is gradually becoming aware of its benefits. Consider how the Goods and Services Tax has helped the overall economy. Here are 5 essential benefits to the customers:

1. Price reductions on products and services

Earlier, different taxes applied to products and services, including excise duty on manufacturing, VAT on every value addition, CST on interstate sales, Service Tax on services, Entry Tax, and so on. As they were passed from one person to another before reaching the customer for consumption, the price of the product or service was increased needlessly. The cost of products and services for the end-user has lowered since GST has a single tax rate for everyone. As a result, GST ensures a reduction in the tax burden.

2.Prices are the same all around the nation

The most important thing is that there is only one tax rate for all indirect taxes, i.e., GST subsumed all other indirect taxes like excise duty, additional customs duty, VAT, CST, entry tax, service tax, luxury tax, etc., so that a consumer does not need to pay double taxes. By paying GST, the consumer can make themselves free from their tax liability once in regards to such product or service. The proposed GST rate is now 18%. Overall, GST implementation reduces the amount of obligatory compliance. After GST, the indirect tax system became more transparent because consumers knew how much tax they were paying and for what purpose.

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3. Taxation made simple

For a novice, the prior indirect tax structure was extremely complex. Because everything is automated, the GST will promote consumer openness and trust in tax administrators and businesses. Consumers will have more faith in a simpler tax system as a result of this.

4. Access to products and services is improved

Consumers do not cross state boundaries to save money on taxes since all goods and services are taxed the same across the country. Furthermore, online shopping firms will structure their operations to reduce lead times while managing warehouse facilities, which are presently reliant on the current tax system’s complexity.

5. Cascading Tax Effect Removal

Because GST is a transparent tax system, there is no possibility of charging tax on tax. Consumers were vulnerable to the tax’s cascading effect under the previous system, which meant two taxes on the same commodity or service.

Komplytek is a well-known GST consultant in Delhi and the NCR. We provide complete Goods and Service Tax solutions to our customers, including: 

  • Obtaining a Goods and Services Tax Registration
  • Preparation of GST return and filing it monthly or quarterly
  • Advice on a wide range of topics
  • Preparation and submission of GST refund applications, as well as follow-up
  • Preparation and submission of annual tax returns
  • Auditing and evaluating the Goods and Services Tax
  • Cancellation of GST No.

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By Poonam

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