Goods and Services Tax:

1. GST is a transparent Tax and also reduce numbers of indirect taxes

2. Biggest benefit will be that multiple taxes like octroi, central sales tax, state sales tax,
entry tax, license fees, turnover tax etc will no longer be present and all that will be
brought under the GST.

Model of GST
The dual GST model proposed by the Empowered Committee and accepted by the Centre
will have dual system for imposing the tax. GST shall have two components i.e.
(i) Central GST
(ii) State GST

Cascading effect of taxes is caused due to levy of different charges by state and union
governments separately. In the current multi-staged tax-structure, the following taxes are levied
by the centre and state separately:
Taxes levied by the Centre include: Income tax, service tax, central sales tax, excise duty and
security transaction tax.
Taxes levied by the state include: VAT/sales tax, octroi, state excise, property tax,
entry tax and agriculture tax.

This tax structure raises the tax-burden on Indian products, affecting their prices, and as a result,
sales in the international market. The new tax regime will therefore, help boost exports.
GST will do away with Gordian knot of multiple tax-rates which is a burden on the common
man.
Dual GST means it will have a federal structure. The GST will basically have only three kinds of
taxes - Central, state and another one called integrated GST to tackle inter-state transactions.
Under the current GST tax reform, all forms of 'supply' of goods and services like transfer, sale,
barter, exchange, and rental will have a CGST (central levy) and SGST (state levy).
GST will also help usher-in an era of a transparent and corruption-free tax administration. It is
set to weed out the current shortcomings of the supply chain owing to the complicated, multilayered policies.
Structure of GST and VAT is same