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Advantages and Disadvantages of GST

Advantages and Disadvantages of GST

Advantages and Disadvantages of GST

In our previous posts, We have already discussed How GST is introduced in India and its meaning and List of Services Exempted in GST . Let us now understand why GST is necessary by knowing Advantages and Disadvantages of GST.

GST Advantages:

1. GST is a transparent tax and also reduce number of indirect taxes.

2. GST will not be a cost to registered retailers therefore there will be no hidden taxes and the cost of doing business will be lower.

3. Benefit people as prices will come down which in turn will help companies as consumption will increase.

4. Separate taxes for goods and services, which is the present taxation system, requires division of transaction values into value of goods and services for taxation, leading to greater complications, administration, including compliances costs , Which is not required in GST.

5. GST will be levied only at the final destination of consumption based on VAT principle and not at various points (from manufacturing to retail outlets). This will help in removing economic distortions and bring about development of a common national market.

6. GST will also help to build a transparent and corruption free tax administration.

7. GST is backed by the GSTN, which is a fully integrated tax platform to deal with all aspects of GST.

8. Technological portal i.e. www.gst.gov.in reduces wastage of papers and fast payment and procedures of GST compliances.

You can also read our previous posts:

1. WHAT IS GOODS AND SERVICE TAX.

2. LIST OF SERVICES EXEMPTED UNDER GST.

GST Disadvantages:

1. Adoption and migration to the new GST system would involve teething troubles and learning for the entire ecosystem.

2. The GST Act has given the control of businesses to Central and State Governments with businessmen binding by-laws. This has given rise to complexity for many businessmen across the nation.

3. Post GST implementation, the first few instances of application have resulted in high tax outgo for businesses. Businesses are trying to claim the credit of input tax but several cases of mismatch of data are coming up. As a result, there is chaos among the tax filers.

4. All activities are online so it will be a difficult for a common man who is not very much fond of computers and internet and have to incur heavy professional expenses.

If any Query Feel free to comment or mail at info.itslyf@gmail.com, we’ll try to sort out your queries as quickly as possible.

– Geetika Goyal (Team ItsLyf)

Advantages and Disadvantages of GST

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