Federal And State Taxes Into A Single Tax Essay

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6. Amalgamating several central and state taxes into a single tax would help mitigate the double taxation, leading to a common national market. From the consumer’s point of view, the advantage would be in terms of a reduction in the overall tax burden on the goods, which is currently estimated at 25% to 30%.
7. Reduction in prices: - manufactures and trades would not have to include taxes as a part of their cost of production, which would lead to reduction in prices.
8. Lower compliance and procedural cost: - There would be reduction in the load to maintain compliance. Also keeping record of CGST, SGST and IGST separately would not be required.
9. GST’s successful implementation would give a strong signal to the foreign investors about India’s ability to support ease of doing business.
10. GST will reduce tax burden on producers and foster growth through more production. This double taxation prevents manufactures from producing to their optimum capacity and retards growth. GST would take care of this problem by providing tax credit to the manufacturer.
11. Various tax barriers such as check posts and toll plazas lead to a lot of wastage for perishable items being transported, a loss that translates into major costs through higher need of buffer stocks and warehousing costs as well. A single taxation system could eliminate this roadblock for them.
12. A single taxation on producers would also translate into a lower final selling price for the consumer, therefore fewer

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