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 Healthcare Industry etc. Now you can scroll down below n check more details regarding GST Impacts on Various Industries
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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