Elimination of Cascading Effect:
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Under the previous tax regime, taxes were levied on top of each other at various stages of production and distribution, leading to a cascading effect of taxes gst calculator india. GST operates on a system of input tax credits, where businesses can claim credit for GST paid on their purchases. This ensures that taxes are levied only on the value addition at each stage of the supply chain, thereby reducing overall tax costs and boosting competitiveness.
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