cbec.gov.in File GST-Goods & Services Tax Act Registration Process in India Advantage/Disadvantage of Law Finance Ministry Central Board of Excise and Customs Revenue Dept

  1. ATiwari

    ATiwari ClueMatrix India

    The GST bill, which has been discussed for a long time, now can be implemented soon. This can be applicable from 1st July 2017 according to the fixed date. It would be something like that the 18 taxes which will be filed in different places in the country as over soon as GST is implemented and a universal tax will be imposed. The Indian Parliament had decided to implement GST [Goods and Service Tax (वस्तु और सेवा कर)] in India from the financial year coming in the financial year 2017-18 (वित्त वर्ष 2017-18). GST is applicable in almost 165 countries of the world, even in Pakistan.
    We have been giving different types of tax to the government while taking or purchasing any product or service till now, such as Sales Tax, Value Added Tax-VAT, Service Tax etc, since July only GST will remain. It's estimated rate can be 18%, e.g. if a mobile is made in Chennai and I want to buy it in Noida, then it will be charged only one tax instead (महंगाई) of three states tax. However, this will increase inflation in a way. GST will not only benefit but also many disadvantages.

    For Example-
    φ→ Currently, you pay 14.5% tax on service. As on the mobile bill of Rs. 1000/- you pay Rs. 145/- service tax. After GST, it will be 18% i.e. you have to pay Rs. 180/- instead of Rs. 145/-. In this way, many services will be expensive such as Food in the Restaurant, Air Tickets, Insurance Premium etc.

    φ→ GST may have a profound impact on Aviation Companies. At the moment, the rate of domestic visits are low, but after GST, as soon as air travels are expensive, traffic will be reduced too. In the case, new Aviation companies will have to suffer heavy losses. At the present, this tax seems to be only 6-9% (According to class), but after GST, it will be above 15%.

    φ→ The lowest insurance in the world is in India (5% of the total Indian population) and by implementing GST, Insurance Companies (बीमा कंपनियों) will get more benefits because the tax will go directly to the insurers.

    φ→ The effective tax rate in the banking and financial sector (बैंकिंग और वित्तीय क्षेत्र) is 14%, which just takes on the transaction, not on its interests. The rate based transaction rate under GST is likely to increase by 18-20%. With the implementation of GST, there will be an increase in the cost of financial services such as loan processing fees, debit/credit card fees, insurance premiums etc.

    φ→ Major petroleum products like crude oil (कच्चा तेल), natural gas, diesel, petrol, and ATF are likely to be kept out of GST, but due to the indirect tax (अप्रत्यक्ष कर ), there is a possibility of cost escalation.

    φ→ According to economists (अर्थशास्त्रियों), due to the implementation of GST in the country, the cost of buying a new house will increase by 8% and the house buyer will reduce by 12%.

    φ→ IT companies will also be harmed if GST is implemented. After GST, everything from the workforce to production cost will increase.

    φ→ GST is a misleading term (भ्रामक शब्द), a taxation system can take 2 types of taxes such as a Central tax and a State tax. There can still be some clarity about its rules. In addition to these two, an Interstate GST (अंतरराज्यीय जीएसटी ) may also be applicable.
    Most indirect taxes will now start coming under GST.

    GST has already been implemented in 165 countries with different names. When GST is implemented, one country is affected positively and negatively in both ways. Neglecting the negative side will not be right, considering all aspects of GST before implementing it.

    You Can Read about GST-Goods and Services Tax in below links:

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