We currently stand at the beginning of a new chapter in the history books, as we witness one of
\nIndia\u2019s biggest fiscal reforms since we gained Independence; introducing GST.
\nGoods & Services Tax, or GST, is the Indian Govt.\u2019s solution to the complex tax structure that has
\nexisted for decades. The impact of this new Indirect Tax regime will be felt across the sector by all
\nbusinesses, small and large. The aim of GST is to subsume and replace existing Indirect Taxes,
\nsuch as Excise Duties, VAT, and Service Tax, and will be levied on both goods and services alike.
\nGST provides a wide range of benefits to the following stakeholders –
\n![\"\"](\"http:\/\/blog.infopark.in\/wp-content\/uploads\/2017\/07\/gst1-263x300.jpg\")
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<\/div>\n
Employees<\/strong>
\n* The average salaried person will face GST on almost all of their regular expenses, right from
\nFood & Beverage to Entertainment.
\n* The rate of GST varies according to multiple factors influencing a specific sector. Employee
\nexpenditure will either rise or fall based on the rate of GST.
\n* Employees will benefit from a simpler tax breakdown on their purchases, as they no longer have
\nto worry about multiple taxes and can simply focus on the GST charged. Instead of having to
\nencounter multiple different taxes, such as Entertainment Tax, Luxury Tax, Service Tax, VAT etc.,
\nindividuals now only have to worry about GST.
\n* GST has no influence on Income Tax or Tax Deducted at Source, as it is an Indirect Tax.
\nCompanies<\/strong>
\n* GST lowers the cost of doing business, as Suppliers, Manufacturers, Retailers and Wholesalers
\nhave the opportunity to recover the GST incurred on their input costs, in the form of Tax Credits.
\n* Companies present in the unorganised sector will also be brought under this Tax Regime,
\nensuring a more organised system.
\n* Exports will benefit as from GST as they are zero-rated for taxes, in order to encourage their
\nability to compete in the international market. The resulting fall in manufacturing costs, on Goods
\nand Services, under GST will allow these Indian products to hold a competitive edge around the
\nworld.
\n* GST will simplify the tax procedure for companies who no longer have to pay dozens of different
\nkinds of taxes, as was the case in the previous tax regime.
\n* Areas of business such as Consumption (Warehousing) and Logistics (movement of Heavy
\nVehicles) would benefit from GST, while a positive impact will be felt due to lower Duties onConstruction material and large-scale Industrial Manufacturing.
\nCommon Man<\/strong>
\n* The new GST regime is expected to create over 1,00,000 immediate new employment
\nopportunities, offering the market an overall boost and benefitting specialised roles such as
\nTaxation, Accounting and Data Analysis etc.
\n* The need for GST specialists will undoubtedly arise, creating a significant number of job
\nopportunities for professionals trained in GST Management, Up-gradation and Reconciliations.
\n* Maximum creation of new jobs will be seen in sectors with a High Demand (E-Commerce,
\nLogistics) and a High Profitability Rate (Cement Industry).
\n* Studies show that GST will lead to an overall growth of 11% in Hiring, across sectors.
\n* The lower tax burden from GST will ultimately translate into lower prices on consumer goods,
\nand the consumer will be free from the issue of cascading taxes.
\nStartup<\/strong>
\n* The implementation of GST has the potential to successfully integrate the Indian economy and
\nestablish a common national market.
\n* GST is capable of uniting the entire Indian market, which will lead to lower business costs.
\n* GST will reduce numerous transaction costs, thereby lowering the overall cost of business.
\n* Export-oriented businesses will benefit greatly as GST is not applied on exported goods and
\nservices.
\n* A huge advantage of GST is its ability to even out the tax structures of various states, and
\nremove the location bias that currently exists. This allows companies to establish factories,
\npremises in their preferred locations, with no hesitation about the potential taxes faced by them.
\n* The introduction of GST helps detach the question of taxes from your investment decision,
\nallowing even undeveloped locations to attract new businesses and investment.
\n* Digital Services will have the opportunity to thrive in a market free from multiple levies.
\nGST Impact on Income Tax<\/strong>
\n* Indirect Tax includes all the Goods and Services which we use in our daily lives, whereas Direct
\nTax is paid on your annual income. As it is strictly an Indirect Tax, GST has no influence on
\nIncome Tax or Tax Deducted at Source.
\n* Proprietor Companies will be affected by GST, if not registered, as all income will be calculated
\nas income of the Owner.
\n![\"\"](\"http:\/\/blog.infopark.in\/wp-content\/uploads\/2017\/07\/gst2-263x300.jpg\")
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GST Impact on E-Commerce<\/strong>
\n* GST will encourage the free movement and supply of goods in every part of the country, in the
\nform of a single, unified market across India, and will increase efficiency in product costs by
\neliminating the cascading effect of taxes on customers.
\nGST Impact on Telecoms<\/strong>
\n* GST will provide Handset makers with an increased ease of doing business, as there will be no
\nneed to set up warehouses in each State. The reduction in Handset prices will also allow
\nManufacturers to afford more cost benefits to consumers, thanks to warehouse consolidation and
\nefficient inventory management.
\nGST Impact on Technology<\/strong>
\n* Through GST, the elimination of multiple levies will benefit the IT sector greatly by allowing a
\ndeeper penetration of Digital Services.
\nGST has caused an –
\n![\"\"](\"http:\/\/blog.infopark.in\/wp-content\/uploads\/2017\/07\/gst3-300x204.jpg\")
<\/p>\n<\/div>\n
\u2022 Increase in GDP
\n\u2022 Increase in Production
\n\u2022 Increase in Employment
\n\u2022 Increase in Govt. Revenue
\n[CONCLUSION]
\nThe general public stands to greatly benefit from GST, and the notion of \u2018One Tax, One India\u2019.
\nOverall, the positive impact of GST will ensure access to goods and services, at competitive and
\naffordable rates, and will improve the quality life of every Indian citizen.<\/p>\n","protected":false},"excerpt":{"rendered":"
We currently stand at the beginning of a new chapter in the history books, as we witness one of India\u2019s biggest fiscal reforms since we gained Independence; introducing GST. Goods & Services Tax, or GST, is the Indian Govt.\u2019s solution to the complex tax structure that has existed for decades. The impact of this new … <\/p>\n
Continue reading “A Beginner\u2019s Guide to GST”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=4"}],"version-history":[{"count":3,"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4\/revisions"}],"predecessor-version":[{"id":22,"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/posts\/4\/revisions\/22"}],"wp:attachment":[{"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=4"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=4"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infopark.in\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=4"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}