While the full impact of GST is still yet to be understood, some of its consequences are clearly visible in our daily lives. From paying bills in a restaurant to shopping online, GST has brought about a sea change in the financial system.Understanding and managing your GST obligations is now easier than ever. Explore our user-friendly Online GST Calculator to effortlessly estimate your tax liabilities and stay compliant with the new tax regime.
When GST was introduced, many businesses were negatively affected due to the unfamiliarity with the new taxation system. However, in time, businesses have begun to understand its nuances and are adopting strategies to make the most of it. Several changes have been made to the GST bill since its implementation, and more will be made in the future to facilitate ease in taxation. Let’s look at the impact of GST, both positive and negative.
Positive impact
- For those looking to start a business, GST will be an advantage. It being a one tax system for all states of India, you would not need to pay various taxes in different states, and would be free of certain duties on your businesses
- Before the GST was implemented, there were a number of indirect taxes levied on various goods and services, including Value Added Tax (VAT), Swachh Bharat Cess, Krishi Kalyan Cess, Service Tax, Central Excise Tax, etc. Now, the government has replaced all these with Central GST and State GST
- With the implementation of GST, India is now a unified market, proving an attractive proposition for foreign investment
Negative impact
- The proposed GST rates are higher on certain goods, than the previous VAT rates, leading to an increased cost on these goods
- GST is divided into two categories, controlled by the state and central governments
- Certain sectors enjoyed an excise duty fee and no tax additions before GST. Such sectors may now face losses as GST gets added
Additional Read: GST’s Impact on Gold
