EFFECTS OF GST ON INDIAN BUSINESS POSITIVE NEGATIVE

EFFECTS OF GST ON INDIAN BUSINESS POSITIVE NEGATIVE

What is GST? 

GST (Goods and Service Tax) is an Indirect Tax levied on the supply of Goods and services. GST had replaced much Indirect Tax that previously existed in India. It was launched on 1st July 2017.

What is the Impact of GST on Indian Market?

GST highly impact the Indian market at the time of its launch. The impact of GST was both Positive and Negative. The rate of GST is divided into five parts 0%, 5%, 12%, 18%, 28% for the collection of tax from the Parties. Further, GST is divided into two Parts Inter-State and Intra-state GST. Due to GST, some products have become costlier for the consumer. As they have to pay more tax on buying of the same product. Also, on the other hand, many products have become tax-free that lies under the GST rate of 0%.

EFFECTS OF GST ON INDIAN BUSINESS POSITIVE NEGATIVE

SEE ALSO: How To Start Your E-commerce Business As Vendor

Positive Impact of GST on Indian Market:-

1). Transparency:- After the GST more transparency enable in the Indian Market. As now the people in the market know that how much they have to pay tax to the Govt.

2). Remove Indirect Tax:- Introduction of GST had effectively removed much Indirect Tax like CST, Excise, CAD, SAD, Service Tax, and so on.

3). Higher Threshold For Registration:- Before Introduction of GST, the small traders, the businessman whose turnover more than 5 lakh are liable to pay VAT. This limit has differed from state to state. But after GST this threshold limit increase up to 20lakhs.

4). Production of Goods and Services:- The production of goods and Services increased after the Introduction of GST in the Indian Market. Due to the increase in production price of Goods fall which is beneficial for the consumers.

5). Online Procedure:- The procedure of filling GST is easy. Every GST registered person has to file GSTR-1 and GSTR-3B. So there is full transparency of tax levied over the parties. The government can easily check the details filled by the parties.

Negative Impacts of GST on Indian Market:-

1). Costlier Services:- The introduction of GST highly affects the service sectors like the banking sector, Airlines sectors, the telecommunication sector. And the burden of GST is levied on the consumers. As they have to pay more tax now than before.

2). Mid- Launch:- GST was launched by the Indian government at the mid of the year. Likewise, all the Businessman faced the problems how to tackle with GST. The Government has to launch the GST at the end of the financial year.

3). Old Wine In A New Bottle:- According to experts, the terms include under GST such as CGST, SGST, IGST is just a new name in accordance with the existing tax systems. Kind of old wine in a new bottle.

4). Business Control:- The GST Act has given the control of businesses to Central and State Governments with businessmen binding by-laws. This has given rise to complexity for many businessmen across the nation.