One of the primary reasons why GST has been hailed as a game changer in the face of Indian economy is the elimination of cascading effect of taxes allowing for a more seamless flow of credit. This is to take effect by making available Input Tax Credit (ITC) to the purchasing dealer in respect of GST paid by the supplying dealer, which resultantly does away with layers of restrictions existing in the erstwhile CENVAT credit rules, thus, maintaining a seamless flow of credit in the credit chain and rendering the end goods and services cheaper as a result of this tax benefit availed.
Source: mastersindia.co
