Taxation: Benefits of GST

Union Government	State	Overall Economy
	Expansion of the tax base	Reduce corruption
Create a unified common market	Increase Compliance	Bring about certainty
Discourage Tax evasion	Enhance Investment	Poverty Reduction
Streamlining of Taxation	Improve the investment scenario	Boost Secondary Sector

National Anti-Profiteering Authority (NAPA)
- Formed under Central Goods and Services Tax Act, 2017.
- Aim – To check the unfair profit-making activities by the trading community and to ensure that the benefits of the GST are passed on to the consumers.
- Composition – NAPA is headed by a senior officer of the level of a Secretary to the Government of India and shall have four technical members from the Centre and/or the States.
- It is a non-profit, government organization.
- It will manage the entire IT system of the GST portal
- 100% shares are owned by the Centre and State government.
GSTN Network
- It will establish a uniform interface for the taxpayer by creating a common and shared IT infrastructure between the Centre and States.
- GSTN handle: Invoices Various returns; Registrations; Payments & Refunds.

Double Taxation Avoidance Agreement (DTAA)
- The Tax Treaty is a bilateral economic agreement between two nations.
- Aim: To avoid or eliminate double taxation of the same income in two countries.
Advanced Pricing Agreements (APA)
- It is a contract between a taxpayer and at least one tax authority specifying the pricing method that the taxpayer will apply to its related company transactions
- APAs gives certainty to taxpayers, reduce disputes, and avoid tax avoidance.
Base Erosion and Profit Shifting (BEPS)
- BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity.