GST A Boon Or Bane

06 Jan GST A Boon Or Bane

After the goods and services tax or GST came into effect, there has been a positive impact on the overall economy of the country. Every business now has to register for GST if they are offering any kind of services or selling goods. They can look in search engines for GST registration near me easily. There are also best GST registration in Delhi where the process is done very quickly at nominal rates.

GST has replaced different kinds of taxes like excise duty, VAT, service tax etc. and all of these were consolidated into GST. This way the burden on the consumer’s pocket has reduced. The concept of “One Nation One Tax” has resulted in a positive impact for most of the sectors, but few of them have seen a negative impact as well. Some of them are as follows:

1. Imports: Integrated GST is charged on all imported or exported goods and services. It is also imposed on all interstate supplies. Importers can claim all the Input Tax Credit of IGST that he pays on import of goods and services. Tax Credit is paid by the importer. Exports will be zero rated and the central and state government share the tax.

2. Exports: A Person who is importing goods and services has to pay IGST. Thus, no GST is charged on exported goods and services. In case of exporting raw material and importing their finished goods, persons exporting the raw material and finished goods have to pay the tax. Exporters can claim IGST paid by them. This will help the country to grow its economic sector.

3. Business: Business men now pay 18-22% GST which was up to 32% before GST was imposed.

4. Real estate: Buyers of any kind of real estate have to pay a GST of 12% now. For under construction properties, 18% GST has to be paid. Before GST, the taxes were above 20% on various raw materials and thus have positive effect in the sector.

5. Iron and Steel: Before GST, the total tax including excise duty, VAT and central sales tax was 19.5% which is now reduced to 12% GST. This will flourish the sector a lot.

6. Entertainment Industry: There were multiple taxes imposed before, but after GST came into existence, there is a single tax ranging from 18-28% which was very high as compared to earlier taxes.

7. Hotel and Tourism: Depending on the room tariff, GST is imposed between 12-28%. For tour operators, 5% GST is imposed.

8. Banking: Currently GST on banking services is 18%, which was 15% earlier. There is some impact on this sector. Interbank transactions arenot free as earlier now.

9. Textile: Readymade garments up toRs 1000 are free from any tax. Above Rs 1000, 12% GST is charged.

Tax on track provides easy GST registration in Dwarka. It is one of the best GST registration in Delhi which provide the service at nominal rates and completes all the required process hassle-free in less than 24 hours. Apart from this, they also provide services to file GST returns online.