What are The Positive and Negative Impacts of GST

As of July 1, 2017, the Goods and Services Tax began being implemented in the wake of the GST bill introduced in December 2014 by the Lok Sabha. Every addition of value to goods is taxed through a multistage and destination-based Goods & Services Tax. Everyone should know about GST. You can take a GST certification course from any institute or you can also take GST certification course online.

 

POSITIVE IMPACT OF GST:

1.    Increase in Foreign Investment- As a result of GST, India has become a unified market, which has resulted in more foreign investment. As a result of reduced costs, goods manufactured in India are more competitive in international markets, contributing to the growth of exports. Putting India in line with international tax standards through the Goods & Services tax will make it easier for Indian businesses to sell globally.

2.    Fewer Tax- The GST is divided into two parts: The central GST and the State GST. The Central GST will replace - Customs, Excise, and Service Tax. Among the taxes that are being replaced by the state GST are the state VAT, the central sales tax, the tax on advertisements, the luxury tax, the purchase tax and the entertainment tax. GST replaced a number of taxes and duties that existed before GST, and has replaced these with Central GST and State GST.

3.    Reduce the cost of doing business- VAT in India has been replaced by GST. This allows us to pay the same amount of tax in all states. All states of India are subject to the same tax system and we have gotten rid of a variety of taxes and duties on our businesses.

4.    Transparency- There has been no corruption in the tax administration. Adding tax information to sales invoices has also increased transparency.

 

NEGATIVE IMPACT OF GST:

1.    Dual Control - GST is often referred to as a single taxation system, however it is in fact a dual taxation system as both state and federal governments will collect separate taxes on the same sale and service transaction.

2.    Incumbent increase of the cost of some commodities - Many products have been taxed at a higher rate, so their prices have increased.

3.    Some sector are at a loss- textiles, media, pharmaceuticals, dairy products, information technology, and telecommunications are among those affected. Commodities like jewelry, mobile phones and credit cards have also become more expensive.

4.    Real Estate Market affected - According to economists, GST has already adversely affected the real estate market in India. In addition to increasing the cost of new homes by 8 percent, it has reduced demand by about 12 percent.

Australia, Germany, Japan, and Pakistan are among the 140 countries that have already implemented GST. One of the most stable economies in the world, India has shown a great deal of capacity to adapt to major economic changes.

GST implementation has both positive and negative impacts on a nation, just like a coin has two sides. By ignoring the negative aspects and considering the positive side of the coin, we can reduce black money. We may have a few problems with GST at the moment, but in the future we will be able to see the bigger picture, which will surely result in a more integrated economy.

So, these were some negative and positive sides of GST. As, I told you you should get a GST certification course online. If you don’t take GST certification course then you will not get complete knowledge about GST.