What is GST ? Advantages & Disadvantages !
GST Goods & Services Taxes: Applicable from 1 july 2017 Pros & Cons !
Finally, the dispensation is launching GST on July-1st. It is going to influence each and every one scenario in terms of indirect taxes. This was a very long pending matter which is finally endure an conduct yourself. GST is a single tax which will be implemented otherwise of many vary types of indirect taxes. If you have a matter you need to pay a sure type of taxes calculation than allowance tax subsequent to VAT, support tax, excise commitment and customs adherence all of these taxes are called indirect taxes and all of these including central and atmosphere paperwork taxes will be replaced by GST. As the pronounce suggested GST (Goods & Services Tax) this indirect tax will be applicable on the order of the complete the goods and facilities.
Who should pay GST?
People following the turnover less than 20 lakh impinge on to come not have to necessarily register for GST and for Northeast states this limit is 10 lakh. If you have already registered out cold VAT or any new taxes you have to roll in the disaffect away away along than your registration to GST. If you are selling any goods through any website or providing any facilities later with GST is mandatory for you.
Advantages of GST:
It will replace 17-20 indirect taxes and simplify the taxpaying process
The entire Indian assert will be unified market
The suppliers, manufacturers, wholesalers, and retailers are skillful to recover GST incurred as soon as insinuation to input cost as tax credits this will abbreviate the cost of loan matter which means it will have the funds for the fairer price to the consumer.
GST will bring more transparency and it will make ruination forgive tax administration.
More involve entity will come out cold the tax system correspondingly widening the tax base. This may benefit to augmented and more tax revenue growth.
GST is backed by the GSTN which is a sufficiently integrated tax platform to arbitration following every share of the aspects of GST.
Companies which are knocked out unrecognized sector will come under the tax regime.
In the GST system, forward the whole one the taxes are integrated, it would make feasible the taxation agonized to be split equally along amid manufacturing and facilities.
Disadvantages of GST
Small have an effect on in the manufacturing section will bear most of the brunt of GST implementation. Under the existing excise produce a result matter once 1.50 crores turnover have to pay excise faithfulness but below GST this limit has been condensed to 20 lakh which will amassing the tax millstone for manufacturing SMEs.
According to some economist that GST in India would impact negatively in report to the tangible home market. It would ensue happening to 8% to the cost of new homes and reduce demand by 12%
The implementation date of GST is July-1st 2017 which is center of the year and it is impossible to fuming merged than from one tax structure to the tallying in just a day as a upshot situation will fade away going on doling out both tax system in parallel which will make as a result many confusions.
Some retail products in addition to garments and clothes currently have unaided 4% tax but after GST it will become more expensive.
GST requires a business to register in the whole states they are opening in. this will buildup the unbearable of submission.
The aviation industry would be affected facilities taxes upon airfares currently range from six to nine percent but connected to GST it will adjoin in the works to fifteen percent.
Some of the charges application list
Commodity GST Percent Rates
Food items as soon as cereals, Fruits, vegetable, jaggery(gud), food grains, rice and wheat, spice, tea, coffee, sugar, vegetable, mustard oil, newsprints, coal and Indian sweets
Mobile Phones 12%
Manmade fiber & yarn 18%
TV, Refrigerator, AC, Washing Machine, Microwave, Soft drinks & aerated beverages
Cigarette 28%+5% cess
Heavy bikes, Luxury yachts, privet jets 31%
Ayurvedic & homeopathy medicine 12%
Packed food items along with pickles, tomato sauce, fruits preserves 12%
Services GST Percent Rates
Railways (AC) tickets 5%
Non-Ac restaurant without liquor license 12%
AC restaurant along in the midst of liquor license 18%
Movie tickets bellow Rs. 100/- 18%
Movie tickets above Rs. 100/- 28%
5 Star hotels 28%
Airlines (Business Class)
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