Page 507 - SSB Interview: The Complete Guide, Second Edition

against the earlier levy of VAT + central excise/service tax)
and the revenue will be shared equally.

ii. In the case of sale to another state, there will be only one type

of tax (central, as against the earlier levy of central sales tax,

excise/service tax). The Centre will then share the IGST
revenue based on the destination of goods.

Advantages of GST

3. GST has impacted the country with several transformational advantages:

a. Removing the cascading effect on the sale of goods and services.

b. Directly impacting the cost of goods, since tax on tax is eliminated.

c. GST is also mainly technologically driven. All activities like

registration, return filing, application for refund and response to
notice need to be done online on the GST Portal. This has sped up

the processes.

d. Increased efficiency in logistics.

e. Unorganised sector is regulated, thus widening the tax base and

enhancing revenues.

f. Checkposts across the country were abolished, ensuring free and
fast movement of goods.

g. Trucks’ travel time in inter-state movement dropped by 20%,

because of no inter-state checkposts, resulting in greater efficiency

and optimisation in fuel consumption.

Goods and Services Tax Network (GSTN)

4. The GSTN software has been developed by Infosys Technologies and IT

network.