Skip to main content

Some important facts related to GST 2017

By
gst

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
gst-7591

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.
Labels:

Comments

Post a Comment

Popular posts from this blog

How to open a Demat account and what benefits are offered by dematerialization?

By
With the introduction of new technologies trading in the stock market has changed a lot. Earlier when BSE was formed in 1875 at that time traders and investors used to stand on floor and shout prices of stocks for buying and selling. The money was exchanged between buyer and seller and a physical copy in the form of certificate was issued to the buyer.The entire process was very time-consuming. In 1996 concept of dematerialization was introduced in share market. Physical copies of shares were replaced by electronic form and were credited and debited from the Demat account of a trader. Following are the benefits offered by dematerialization : 1)Common bank In Demat account along with shares, other financial instruments like bonds can be stored as well. Traders can use the same account to trade in stocks and bonds both. 2)Time and cost To deliver a physical copy of shares cost is involved and also it takes the time to do so. With dematerialization, this cost and time c...
Post a Comment
Read more

What is meant by stock market trend and its types ?

By
Market Trend Stock market is of highly volatile nature and we often notice ups and downs at stocks price charts on daily basis. To some extent market trend is responsible for these movements in stocks prices. Understanding market trend is very much important to perform quality technical analysis. In general term market trend is broad upward or downward movement in a stocks price over a period of time. As we know stock prices can be volatile and does not necessarily follows a straight line by zooming price chart a defined market trend can be identified. Discount brokers offers such necessary details about market trend, price charts and more on their trading platform itself. Three major types of market trends are discussed below : 1) Uptrend When market is following upward trend then at that time both tops and bottoms of a stock chart keeps on increasing. Everyday stock price touches a new high and falls lower than it did on the earlier day. Do not frame a misconception th...
Post a Comment
Read more

How would you differentiate between Traditional brokers and Discount brokers?

By
A brokerage firm is a financial institution that enables traders and investors of stock market to buy and sell financial securities. To execute any contract in stock market two parties are required buyer (long position holder) and seller (short position holder). Basically a broker act as an intermediary between buyer and seller and facilitates them to trade on various financial securities. In return brokerage firms receives compensation in the form of commission/fees once the transaction has been executed. We have two types of brokers : 1)Traditional Brokers 2)Discount Brokers Traditional brokers or full service brokers are the oldest brokers in stock market. They usually undertake more then simply acting as an intermediary to execute the trading process.There services also includes proper researching of stock market to offer necessary recommendations to stock market players as well.Often these firms also offers margins loans in addition to certain client to purchase investment on cre...
Post a Comment
Read more