GST Impacts on Various Industries – IT, Finance, Banking, Service Etc

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GST Impacts on Various Industries – IT, Finance, Banking, Service Etc

GST Impacts on Various Industries – IT, Finance, Banking, Service Etc – Complete Analysis, Check Good and Service tax Impact on Various Industries like – GST Impacts on Manufacturing and retail sector, GST Impacts on Entertainment and hospitality, GST Impacts on IT & telephone, GST Impacts on Service Sector, GST Impacts on Infrastructure Industry & real estate, GST Impacts on Banking Sector, financial services and insurance, GST Impacts on Health Care Industry etc. Now you can scroll down below n check more details regarding GST Impacts on Various Industries

Key Definitions Under GST, Definition of various key words used in GST

GST Impacts on Various Industries

(A) Manufacturing and retail sector:-

  • Increased fungibility of credit on goods and services
  • Full credit of tax on interstate sale will reduce cost of procurement/ production.
  • No retention/ disallowance on stock transfer of goods will also reduce cost procurement.
  • Credit of import duties will make imports cheaper for retailers . Thus, all imported consumers goods will benefit.
  • With introduction of GST , the entry tax and its additional compliances will be eliminated.
  • Job work transactions and stock transfers, currently no taxed, are likely to be taxed and will effect production outlay

(B) Entertainment and hospitality :-

  • Eliminates multiplicity of taxes.
  • By allowing credit between goods and services, GST will prevent cascading of taxes, resulting in increased profits for companies in this sector.
  • Simplifies levy and valuation on composite transactions. Thus, will reduce litigation challenges and related costs faced by companies in this sector.

(C) IT & telephone :-

  • End to classification disputes on software, SIM cards, franchise fees, AMCs, etc.
  • Simplifies levy and valuation on composite transactions by eliminating multiplicity of taxes- VAT, service tax, entry tax

(D) Service Sector :-

  • Better credits across goods and services
  • No segregation between manufacture, services and trading for utilization of credits

(E) Infrastructure & real estate :-

  • Simplifies levy and valuation on composite transactions by eliminating multiplicity of taxes- VAT, service tax, Entry Tax
  • Increase in total tax incidence on certain products under the GST regime such as cement and steel
  • SEZ benefits to continue – supplies to SEZ to be zero rated
  • Real estate development transactions – no way forward provided yet
  • Stamp duty may continue to apply

(F) Banking, financial services and insurance:-

  • Better credits across goods and services
  • Increase in credit pool due to availability of GST credits on purchase of goods
  • Interest on loans expected to be taxed under GST

(G) Healthcare Industry:-

  • Uniform classification of Healthcare products under both CGST and SGST to avoid litigations.
  • Credit on all types of GST ( on goods and services) incurred for all business functions to avoid cascading effect.
  • Abolition of all other indirect taxes like- Entry tax, Cess, Additional Tax, octroi etc.
  • Position of credit of taxes paid on pre-operative activities for establishing manufacturing set-up from construction activity till commercial production , Research & Development activity etc.

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