advantages and disadvantages of GST
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GST advantages GST is a transparent tax and also reduce number of indirect taxes GST will not be a cost to register retailers therefore there will be no higher taxes and cost of doing business will be there is no doubt that in production and distribution of goods services and increasingly used or consumer and vice versa GST disadvantages economics to say that that the GST in India in Pak negatively on the real estate market expert says that cgst Central GST sgst cgst are nothing but new names for Central Excise you are service tax VAT and CST hence there is no major reduction in the tax number of players retail products currently have only 4% tax on them
muskan170:
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Advantage
1.GST is a transparent tax and also reduce number of indirect taxes.
2.GST will not be a cost to registered retailers therefore there will be no hidden taxes and and the cost of doing business will be lower.
3.Benefit people as prices will come down which in turn will help companies as consumption will increase.
4.There is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa.
5.Separate taxes for goods and services, which is the present taxation system, requires division of transaction values into value of goods and services for taxation, leading to greater complications, administration, including compliances costs.
Disadvantage
1.Some Economist say that GST in India would impact negatively on the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.
2.Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
3.Some retail products currently have only four percent tax on them. After GST, garments and clothes could become more expensive.
4.The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate.
5.Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem.
1.GST is a transparent tax and also reduce number of indirect taxes.
2.GST will not be a cost to registered retailers therefore there will be no hidden taxes and and the cost of doing business will be lower.
3.Benefit people as prices will come down which in turn will help companies as consumption will increase.
4.There is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa.
5.Separate taxes for goods and services, which is the present taxation system, requires division of transaction values into value of goods and services for taxation, leading to greater complications, administration, including compliances costs.
Disadvantage
1.Some Economist say that GST in India would impact negatively on the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.
2.Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
3.Some retail products currently have only four percent tax on them. After GST, garments and clothes could become more expensive.
4.The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate.
5.Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem.
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