0 hidden charges. 0 forex

Simplifying the Central GST Act and Rules: Meaning and Advantages

Reviewed by
Created on
May 19, 2023


What’s Inside

Have you ever wondered how businesses pay taxes in India? The answer is the Central Goods and Services Tax (CGST) Act and Rules. In 2017, the government introduced these rules to facilitate taxation for businesses in the country.

It replaced the previous indirect taxes like service, excise, and value-added taxes.

Whether you are already an established business owner or starting a new one, understanding the Central GST Act and Rules helps you to follow the tax regulations.

Let’s explore the meaning and benefits of the GST Act India to make your life a bit easier.

What is GST Act India?

With the tagline “One Nation, One Tax, One Market,” the GST Act got introduced to bring transparency to the Indian taxation system. It contains a set of laws to aid tax collection, payment, and distribution imposed on the supply of goods and services.

Under GST Act India, the central government charges and collects the Central GST. On the other hand, the State Government charges and collects State GST on the intra-state supply. For the inter-state supply, the Centre levies and collects IGST.

The new system aimed to simplify the tax structure and decrease tax evasion. It also encouraged businesses to comply with rules and smoothly run their business. The change brought a significant shift in the tax system of India.

Benefits of Central GST Act India

Central GST Act has multiple benefits for the economy, businesses, and individuals. The prominent advantages of the GST Act are:

1. Removal of Multiple Taxes

Before the GST onset, the Centre and States had different tax rates on the same goods and services. The implementation of multiple taxes made the tax system complex and confusing. It also increased the burden of taxation on individuals.

2. Cost Reduction

The CGST decreases the prices of goods and services as the government levied multiple taxes earlier. It is helping the taxpayers save more money by removing the cascading effect of taxes.

3. Ease of Business

The main aim of CGST is to simplify the taxation system. Under GST, the rules have the same concept everywhere in the country. It makes understanding the process easier and helps conduct interstate business without stressing about multiple taxes charged.

4. Improved Logistics and Distribution

GST shortens the transportation cycle and turnaround time. The e-way bill system under GST removed interstate checkpoints, helping to improve transit and destination productivity. As a result, it helps to reduce unnecessary high logistics and distribution costs.

5. Smooth and Easy Documentation

The government also brought online return filing and input credit verification under GST. It leads to better compliance and promotes transparency in the taxation process. The new taxation system made tax filing and maintaining documents easier for business owners.

Central GST (Goods and Services) Act - Wrapping Up

The Central GST Act made the Indian tax system more modern and business-friendly. It’s helping businesses with transparency, improved efficiency and made it easy to comply with tax regulations. Besides, you can seamlessly manage day-to-day transactions and finances under the GST Act.

With Ask.Fi, you can review your spending patterns and see your money grow. With the 360-degree view of your expenses, you can filter your spending by category and time. Moreover, through the Fi app, you can invest the money you save in Smart Deposits and commission-free mutual funds.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
Share this article
Copied Link!
Work & Money
Simplifying the Central GST Act and Rules: Meaning and Advantages


View similar articles in
Work & Money
Get the Fi app