What are the drawbacks of GST on Import-Export Industry?
Explain in your own words.
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Change in Business Software
Most businesses were working on accounting software or ERPs for filling tax returns, configured with VAT, excise and service tax earlier. However, now under GST regime, they have to modify their software and upgrade it with new GST-compliant software. This leads to rise in cost of purchasing this software and giving special training to their employees for working on it.
2. Rise in Operational Costs
Most small businesses in India had to file returns on their own to save costs and were not able to hire tax professionals. After GST implementation, they require to have skilled people who can give them professional assistance for filling returns under new tax system.
3. Web Procedure
Many small businesses are not tech-savvy in India and so they are finding difficulty in filling returns under GST as entire process of this tax system runs online only. Even as rest of the nation gets ready to go digital, but businesses in small cities across the country face a huge technology problem.
4. Disruption to Some Industries
Some experts say impact of GST has been showing negatively in the real estate market. Even cloth merchants and drug shops are not happy with this new tax regime in India. Now we need to see both positive and negative impact of GST on different industries.
Under GST regime in India, businesses will experience larger competition in 2017. Certainly, this one tax policy has simplified the collection of customs duties from importers and exporters. However, market analysts have also identified few disadvantages in which there are worries for some industries
Most businesses were working on accounting software or ERPs for filling tax returns, configured with VAT, excise and service tax earlier. However, now under GST regime, they have to modify their software and upgrade it with new GST-compliant software. This leads to rise in cost of purchasing this software and giving special training to their employees for working on it.
2. Rise in Operational Costs
Most small businesses in India had to file returns on their own to save costs and were not able to hire tax professionals. After GST implementation, they require to have skilled people who can give them professional assistance for filling returns under new tax system.
3. Web Procedure
Many small businesses are not tech-savvy in India and so they are finding difficulty in filling returns under GST as entire process of this tax system runs online only. Even as rest of the nation gets ready to go digital, but businesses in small cities across the country face a huge technology problem.
4. Disruption to Some Industries
Some experts say impact of GST has been showing negatively in the real estate market. Even cloth merchants and drug shops are not happy with this new tax regime in India. Now we need to see both positive and negative impact of GST on different industries.
Under GST regime in India, businesses will experience larger competition in 2017. Certainly, this one tax policy has simplified the collection of customs duties from importers and exporters. However, market analysts have also identified few disadvantages in which there are worries for some industries
Skn:
Are these disadvantages to Export-Import industry??
yes...please marked as Brainliest answer
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