Distribution network will be simpler :
At present, if an assessee wants to do business in multi-States, he has to maintain stocks in each State and movement of goods from one State to another means further blockage of funds, besides corruption and harassment.
Under IGST, a dealer can establish hub and spoke approach for distribution of his final products. He can maintain depots at few strategic locations in country and from those locations, he can distribute goods to nearby States. This will be very cost effective distribution network for assessee.
It is true that 1% Additional tax on supply of goods (ATSG) in inter-state will impose the additional burden. However, if such tax is levied only once at the originating State, the impact of this additional tax will be limited.