Goods and Services tax bill has arrived and there are still a lot of questions about it. It is very important to have a clear understanding of GST bill pros and cons. In our article last month, we talked about What is GST? GST Full Form & GST Explained by CAs & Lawyers. While the article explains every relevant detail about GST and its impact on Indian startup ecosystem after implementation, we have also presented our understanding in a simple power point presentation (link given at the end of the article). Don’t forget to share this GST ppt with your friends.
GST Bill Pros and Cons
With the implementation of GST Bill in India, only one tax will be levied for transactions against goods & services by the central government. It was expected that GST bill will create differences in opinions of various Economists, CAs and Lawyers. Lets check out the advantages and disadvantages of GST Bill –
GST Bill Pros
- GST reduces the indirect taxes which will make the process of tax collection transparent and easy.
- It will eliminate all the hidden taxes and the cost of operating a business will be lower, thereby helping MSMEs, SMEs and startups in decreasing the taxation overheads.
- With reduced operational cost, prices of products or services will get lower benefitting directly to consumer.
- Present taxation requires division of transaction values into value of goods and services for taxation which leads to higher complications. administration and cost of compliances. The new taxation system will let the work equitably divided between manufacturing & Services.
- It is quite obvious that with a single point of taxation, there will be a firm and concrete taxation infrastructure which will be, most important, transparent & corruption less.
GST Bill Cons
Some economist say that GST will have a negative impact on real estate market.
Some also say that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST.
As mentioned above, here is a quick GST ppt showing bill’s pros and cons with its impact on Small businesses and Startups.