a) no cascading effect of taxes b) rates will be down c)black money evasion will be possible d) less paperwork will motivate the self-employment and increase the job opportunity for youth. e) inflation rate become low so related benefits will be there f) more attraction will be possible from foreign investors as taxation system become easy and much more.
All the cascading effects of CENVAT and service tax will be more comprehensively removed with a continuous chain of set-off from the producer’s point to the retailer’s point than what was possible under the prevailing CENVAT and VAT regime. Certain major Central and State taxes will also be subsumed in GST and CST will be phased out. Other things remaining the same, the burden of tax on goods would, in general, fall under GST and that would benefit the consumers.