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Some important facts related to GST 2017

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GST- Goods & Service Tax , it is a value added tax which is imposed on sale, usage and manufacturing of different goods and services and this charge may vary from country to country. Consumers of goods and services have to pay this charge and different business entities collect this charge to further forward it to the government.This single taxation system in the entire country for all goods and services is formed with an aim of improving the economic growth and making taxation system more transparent.

Advantages of GST :
1)It will decrease the number of indirect taxes and with its implementation business entities can mention tax applied in slaes invoice itself. Consumers will be having no more confusion on the amount of tax which they are paying for using a particular product or service.
2)In the present taxation system there are separate taxes which are to paid making the entire process of taxation difficult and complex, as it requires the division of transaction value in to value of goods for taxation.
3)The biggest benefit of GST will be that there will no more multiple taxes in the form of sales tax, entry tax, license fess and more as they all will be brought together under GST. Doing business activity in country will become easy and various hidden taxes will be removed.
4)In this new taxation system when various taxes will be integrated together it will help to split the taxation burden equally between manufacturing and services by reducing exemptions and lowering tax rate with increase tax base.
Benefits-of-GST-Goods-and-Service-Tax

Disadvantages of GST:
1)There are few economists who believes that GST is nothing to be happy for as its just a new names for service tax, VAT and CST.
2)Real estate is expected to witness negative impact of GST as it would add up to near by 8% to the cost of new house and will low the demand by 12%(approximately).
3)Aviation industry is also expected to be negatively affected. Currently service tax on air fares range between 6-9%. With the implementation of GST and it will range between 14-15% .
4)Garments and clothes are expected to be costlier after the implementation of GST as at present some retailers have to pay only four taxes.

Few goods/services which are believed to become cheap for common man after the implementation of GST 2017 :
  • Two wheelers
  • Movie ticket and dinning at restaurants
  • Television and washing machine
Few goods/services which are believed to become costlier for common man after the implementation of GST 2017 :
  • Mobile bills
  • House rent and medical facilities
  • Alcohol, cigarettes and tobacco products
  • School fees
  • Courier services
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GST 2017 will definitely have its impacts on different industries. It may improve the economic conditions of country and may not. Different economists are having their own beliefs.Indian stock market will also have its impact for sure.But it does not indicate that traders and investors should fear and stop trading.Traders can save there huge amount paid on brokerage by opening demat account with discount brokers.
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