1. Easy to start a business

Starting a business under the GST structure has become more streamlined as you won’t have to deal with different tax rules in different states. This centralized registration system cuts down on the time taken to establish a business as well as removes the high fees that one had to pay.

GST registration also makes it easier for businesses to carry out business transactions across state borders without having to deal with separate tax regulations.

2. Increased efficiency in logistics

Previously, due to the different tax rules, goods being transported to and from one state to another had to go through checks which took a considerable amount of time. One of the benefits of GST in India is that state cross-border transport of goods will now be much more efficient due to the reduced amounts of checks that one has to go through. 

3. Simplified process

Since GST clubs all the different types of tax under itself, a GST business spends less time calculating all of them and experience a smooth tax-paying process. 

4. Composition scheme

The government has also introduced tax composition schemes for businesses with an annual aggregate turnover rate of less than INR 1.5 crore. 

5. Higher threshold for GST registration

Any business with a turnover above INR 40 lakhs have to register for GST. For service providers, GST registration is mandatory if the turnover is higher than INR 20 lakhs.

6. Eliminates the cascading effect of taxes

All the different types of tax that existed before, have been clubbed under either CGST or SGST as follows:

Central Taxes subsumed under GST:

● Central Excise Duty (including additional excise duties)

● Service tax

● Additional customs duty (CVD)

● Special Additional Duty of Customs (SAD)

● Central surcharges and cesses

State Government Taxes subsumed under GST:

● Value Added Tax

● Central Sales Tax

● Octroi and Entry Tax

● Purchase Tax

● Luxury Tax

● Taxes on lottery, betting & gambling

● State cesses and surcharges

● Entertainment tax