Which of the following is a benefit of GST for businesses?
Practice Questions
Q1
Which of the following is a benefit of GST for businesses?
Increased compliance costs
Reduction in tax cascading
Higher tax rates
Complex filing procedures
Questions & Step-by-Step Solutions
Which of the following is a benefit of GST for businesses?
Step 1: Understand what GST is. GST stands for Goods and Services Tax, which is a single tax on the supply of goods and services.
Step 2: Learn about tax cascading. Tax cascading happens when a tax is applied on top of another tax, leading to higher costs for businesses.
Step 3: Realize how GST helps. GST reduces tax cascading by allowing businesses to claim back the tax they paid on inputs (goods and services they buy).
Step 4: See the benefit. By reducing tax cascading, businesses pay less overall tax, which lowers their total tax burden.
