Industry body Ficci today said the rollout of GST will bring about significant gains to India’s economy and it looks forward to working with the Government for successful implementation of the crucial tax reform. GST will ease the burden of taxpayers in understanding and complying with tax laws and help in reducing the generation of black money, it said. “Goods and Services Tax (GST) will prevent cascading of taxes since input tax credit will be available across goods and services at each stage of the supply chain. The harmonisation of the laws, procedures and rates of taxes enforced by the Centre and the states will bring transparency/uniformity in our tax regime,” Ficci said. Moreover, it said, the establishment of GST Network automates the processing of tax related filings, enabling automation of processes like registration, returns, refunds, tax payments, etc. which is expected to reduce the interface between the taxpayer and the administration and will go a long way to reduce unwarranted litigation.
Asserting that the GST will help curb the spread of the country’s parallel economy, Ficci said the framework of the tax structure, whereby input tax credit is available for the subsequent activity of manufacture or trading, serves as an incentive to be more tax compliant. “Introduction of a comprehensive GST will enable accurate quantification and corresponding refunds of all taxes and duties suffered by an export product making India’s exports competitive in the international market,” the chamber said.