It means that if a product is taxed at 18%, it will include both central government’s taxes and state government’s taxes. When a product moves from one state to another, we will not have to pay other taxes, such a import tax, etc.
This will benefit people in numerous ways:
1. Business made easier: Doing a business would be easier, because the businessmen will not have to worry about doing a business from a specific place. The tax is going to be on the final product and no other state taxes are going to be applied.
2. Uniformity of taxes: As GST will be enforced, all other value added taxes will vanish.
3. No hidden costs: There would be no other indirect taxes to be paid, which would reduce the hidden costs of doing business.
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