The GST Bill is the last stages of clearing the hurdle of Rajya Sabha. The experts suggest that the impact for long term will be positive and it would be mixed for a short term, in some sectors it could be positive OR in some sectors it be negative.
GST should be very helpful to create ‘A single India’ by eliminating geographical division. In a non GST system, there is a burden of ‘’tax on tax’’, because there is no set offs taxes for raw materials or previous purchases.
Example Of Counting GST:
- GST Manufacture to Wholesaler
- GST-Wholesaler-to-Retailer
- GST-Retailer-to-Customer
IMPACT OF GST BILL ON VARIOUS SECTORS:
AUTOMOBILES
Automobile industry is one of the fastest growing sectors. The manufacturer pay the tax at the time of dispatch, so this I one of the big challenge for the automobile sectors. But at the same time GST will make interstate business easier and make whole country to one market.
FMCG
GST will be positive for FMCG product. GST is also good for the household and personal care space manufacturer. But it will be negative for jewelry and cigarette manufacturers because of the additional tax rates.
LOGISTICS
By implementing the GST bill will play an important role in logistics and warehousing sectors. The GST will lead the logistic sector means GST would be positive for these sectors. The GST eliminates the long queues and delays and also free from the long documentation process.
INFRASTRUCTURE
Because of the GST, there is clarity of tax in works that is a big benefit for the infrastructure sector.
PHARMACEUTICALS
GSP could be negative for pharmaceuticals sector because of the increasing of an indirect tax. Experts day that indirect tax which is paid by pharmacy companies would be increase by 60% and market price by 4%.
OIL & GAS
Products like a crude oil, natural gas, diesel etc. are kept out because of the GST. Because of the dual indirect tax costs are increased which is not good for this sectors.
CEMENT
Overall tax rate on cement sectors could be decline and also beneficial from expected decline in costs of logistic. Cement firms may expect benefit that demand and utilization of plant levels are picking up.
WIND POWER
GST would be negative for wind sector. It is also not good for turbine generator manufacturer because of the pressure of developer margins. For example Suzlon and Inox wind affected negatively because of the GST bill.
GST will also affect to the students because of the rising price of computers, laptop etc. But there is also one big point that GST would not affect in tuition fees, books etc.GST bill affect to the general public as well. And yes last but not the list GST could be affect to the driving also.
There is another more benefit by GST like decrease the cost of transaction, reduces the burden of tax and also reduce the corruption.
Conclusion:
These are the basic explanation about GST Bill which are recently passed in Indian Rajya Sabha. Hope, these all necessary information might help our readers to know more about GST Bill. We are creating more articles related to GST Bill for more information. We know very well that these all information are just basic but not enough.
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