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

GST Impacts on Various Industries – Complete Analysis

GST Impatc CAknowledge

(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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One comment

  1. Analyzing the GST impact on my company who is in engineering services.

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