Sunday, 7 August 2016

GST Bill Advantages and Disadvantages in India

 

Advantages and disadvantages of GST Bill
GST BILL Advantages and Disadvantages 

(Requested to Comment Below) we all know that GST Bill in Rajya Sabha is Passed on 3rd August 2016. Now this Bill is in the process to Make a Law in India after certain process.

As of Now the Tax rates and process of it is not Cleared. therefore India is not cleared about the advantages and disadvantages of GST Bill. 

once the act will applicable there are many products which will be cheaper. On the other hand some of the products will be costlier. We have to pay more to purchase those products. Price Factor is the main points why merits and demerits of Gst Bill is in News.

Like all the other things there are some pros and cons of GST bill. This will clarify only after the final draft of the bill. final Draft of the bill will clear after the approval of GST council. 
Just wait for some time to come to know what exactly will be the tax rates of GST in India.

while it is a must awaited bill but the advantages and disadvantages of GST on common man and some of them are as follows :
Also Read : Benefits of GST Bill on Common man



Advantages of GST Bill

This model is a single Tax model and Tax on Tax will be removed. Many Indirect Taxes will be merged as Single Tax.
After the implication of Goods and Service Tax act India will be a one market.
All the products and services will be provided at same price in all the states. As the rate of tax will be same in all over India.This is the Biggest advantages of gst bill in India.
After This the tax is not applicable on manufacturing hand. So for manufacturers it is easy to grow their business and develop it. 

Now Excise and some other taxes are applicable at the manufacturing Point. After this these will applicable at consumption point. 
This system will effect the evasion and theft of Tax will be minimised as it is easy to track. This may be the demerit of GST for Tax Evaders
All the Products where multiple taxes where applicable will be cheaper like excise duty and vat both will come to about 30% of Tax but in GST it is assumed to be 18-20%.
Above were the advantages of GST bill and now I will show you some Disadvantages of GST bill in India. This are the losses which will effect you only in short term and may not be painful for you in the long run if the system will work properly.

Disadvantages of GST Bill in India

The Service Tax in India is now 15% but the proposed GST is about 18-20%. All the services will be Costlier and this one of the Disadvantages of GST Bill on Common Person.   
There are some retail products where the Tax rate is only 4 percent but with GST it will be costlier like Garments and cloths.  
The control on business will be of state and central government so it may be some complex for businessman.
All credits will be online and some penalties are like criminal activity. So it is threatening for small businessman who are now free from Taxes. 
GST is also having three type of taxes and all have to be maintained and this not going too easy for small Businessman.


Above are the advantages and disadvantages of GST Bill in India and as per me it will be more comfortable than the existing Tax Process in India

Also read
Effects of GST Bill on Products & services 
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Give Us comment for any query on GST Bill 




11 comments:
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  1. GST is a very good step in India and i thing there may be some disadvantages of it because of change of system and new type of tax. people may take time to adopt the same but it will relief them from many other indirect taxes

    ReplyDelete
    Replies
    1. Correct. As far as gst is concern it will be advantage for Indian economy

      Delete
  2. There are many advantages and disadvantages of GST Bill. what ever you have posted is really nice but please let me know what will be the rate of GST?

    ReplyDelete
  3. Nice article on gst. Good post

    ReplyDelete
  4. First meeting if gst council is held today on 22nd sept for setting up policies. All advantages and disadvantage of gst will be cleared after that

    ReplyDelete
  5. Gst council meeting had over today. Will it be beneficial or disadvantage for gst future

    ReplyDelete
  6. what do you think about the apply timing of the GST. Do you think GST will apply from april 2017

    ReplyDelete
  7. Really informative. Can be a top blog in online Marketing.

    ReplyDelete
  8. Thanks for sharing this valuable information.

    ReplyDelete

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