Goods & Service Tax Impact on Various Sectors in India

According to assessment during the implementation of GST in 2014, there were a little more than 12 lakh service taxpayers in the country. Interestingly, now the number has almost gone up over 18 lakh across different slabs of GST. This data is based on the number of GST filings last year.

With the tax department estimating a large number of delays or non-disclosure of GST, it becomes important to understand how GST is impacting various sectors in India.

GST or Goods and Service Tax is levied on all manufacturing businesses and service providers in India. Replacing the older system of individual taxes by Central and State Governments, this streamlines the taxation system much more.

The various impacts of this taxation system on different industries are discussed below –

Financial sector

From lines of credit like business loans, home loans, personal loans, etc. to investment options like fixed deposits, the financial sector offers numerous types of services to the economy.

With the implementation of GST, a certain increase in credit pool has been observed. A major reason for this rise can be traced to the fall in prices due to the implementation of GST and consequent growth in asset acquiring even with credit accounts.

Learning GST meaning and its impact, it is important to understand that rates of interest on loans went up. This can be owed to the higher cost of functioning for financial institutions.

Manufacturing industry

The manufacturing industry is one of the several which have immensely gained from GST. Previously, numerous taxes were levied on manufactured products. Additional taxes were also levied on them during transport across state lines.

GST has impacted the manufacturing sector by reducing the universal tax on the end price. The decrease in prices has boosted the market for the manufacturing sector.

Overall, the impact of Goods and Service Tax has been beneficial in the manufacturing industry, though a reason for concern has been the original tax, which stands at an additional 1%.

Automobile industry

GST for automobiles has been standardized at 28%. This has had a mixed impact on the industry as a whole.

While larger automobiles have majorly benefitted from the GST tax rate in India, medium and smaller vehicles have had a reduction in sales. This is attributed to the higher selling price due to GST.

However, the commercial vehicles sector has benefitted significantly from the implementation of GST.

It is important for entrepreneurs in this industry to know all about GST, especially in case of the transfer of automobiles across state lines.

Telecom sector

While considering what is GST and its impact on the telecom sector, the stand-out point is that there has been an increment of 3% tax. The direct impact of GST on the telecom sector is that the cost of call charges along with all related services has gone up.

Implementation of GST has also necessitated technological upgrades. For several industries, it can be difficult to directly implement all the required upgrades without financial assistance. Considering about GST and its impact, this upgrade cost must also be taken into account.

In case any business organization finds it difficult to implement these mandatory upgrades, they can avail of financial assistance. Several financial institutions like Bajaj Finserv offer financing options specifically for such purposes.

Implementation of the Goods and Service Tax has an overall introduced convenience for customers of products and services. While in some cases the price has marginally gone up, buyers and sellers now only have a single tax to pay.

As for businesses, it is essential for them to know the complete guide on GST registration procedure in India. Delay on GST filing can incur any penalty charges.

16,756 thoughts on “Goods & Service Tax Impact on Various Sectors in India

  1. An outstanding share! I have just forwarded this onto a colleague who had been conducting a little homework on this. And he in fact bought me lunch due to the fact that I stumbled upon it for him… lol. So let me reword this…. Thanks for the meal!! But yeah, thanx for spending time to discuss this matter here on your site.|

  2. Hi there everybody, here every one is sharing these familiarity, so it’s good to read this blog, and I used to go to see this weblog all the time.|

  3. Wow! This could be one particular of the most beneficial blogs We’ve ever arrive across on this subject. Basically Excellent. I’m also a specialist in this topic therefore I can understand your effort.

  4. One more thing. I really believe that there are several travel insurance web-sites of respectable companies that let you enter your journey details and have you the prices. You can also purchase the actual international travel insurance policy on the net by using your credit card. All you have to do is usually to enter all travel details and you can start to see the plans side-by-side. You only need to find the program that suits your financial budget and needs and after that use your credit card to buy the item. Travel insurance on the internet is a good way to check for a dependable company pertaining to international travel cover. Thanks for revealing your ideas.

  5. Can taking prenatal buy clomid help you conceive? Winsome a prenatal vitamin, in addition to eating fruits, vegetables, meagre comestibles and whole grains, can help you get your congress in the pink and in proper shape to conceive. In compensation this saneness, myriad doctors imply attractive prenatal Clomid conclusively you start worrying after a baby.

  6. What fruit is a reasonable female viagra no prescription. Watermelon may be a natural Viagra, says a researcher. That’s because the prevailing summer fruit is richer than experts believed in an amino acid called citrulline, which relaxes and dilates blood vessels much like cough medicine with viagra without a doctor viagra no prescription and other drugs meant to behave erectile dysfunction (ED).

  7. I have been reading for the past two days about your blogs and topics, still on fetching! Wondering about your words on each line was massively effective. Techno-based information has been fetched in each of your topics 파친코사이트

  8. Nice post. I was checking constantly this blog and I am impressed! Extremely useful info specifically the remaining phase 🙂 I deal with such information a lot. I used to be looking for this certain info for a long time. Thank you and good luck.

  9. I truly love your blog.. Excellent colors & theme. Did you build this website yourself? Please reply back as I’m looking to create my very own site and would love to learn where you got this from or exactly what the theme is called. Appreciate it!

  10. Hi! I could have sworn I’ve been to this website before but after going through some of the articles I realized it’s new to me. Regardless, I’m certainly happy I came across it and I’ll be book-marking it and checking back regularly!

  11. I need to to thank you for this good read!! I certainly enjoyed every little bit of it. I have you book-marked to look at new things you post…

  12. Wow that was strange. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyway, just wanted to say excellent blog!