Conclusion about impact of GST on different business. Please answer soon its urgent..
The impact of GST on Indian business can be negative and positive. Whether it is a small business or large business, the impact would be almost same. Let check the benefits to the business:
Running Business Uniformly:
There is no VAT tax anymore which means the business wouldn't have to worry about VAT compliances for every state.
Fewer Tax:
There will no Service Tax, Central Excise Duty, Duties of Excise, Central Sales Tax and others. This will bring down the burden of multiple taxes.
Indirect Benefit to Startups:
Startups that have the turnover of Rs 5 lakhs have to register for VAT. With GST, the annual turnover of Rs 10 lakh will require to register for GST.
Negative Impact:
High GST Rate:
The proposed GST rate is quite high than VAT which won't bring down the price of commodities.
Loss for Manufacturing Rates:
GST is largely related to manufacturing segment, it may incur loss.
Higher Loan Interest:
Companies taking business loans?may face higher interest rates and other complications
Running Business Uniformly:
There is no VAT tax anymore which means the business wouldn't have to worry about VAT compliances for every state.
Fewer Tax:
There will no Service Tax, Central Excise Duty, Duties of Excise, Central Sales Tax and others. This will bring down the burden of multiple taxes.
Indirect Benefit to Startups:
Startups that have the turnover of Rs 5 lakhs have to register for VAT. With GST, the annual turnover of Rs 10 lakh will require to register for GST.
Negative Impact:
High GST Rate:
The proposed GST rate is quite high than VAT which won't bring down the price of commodities.
Loss for Manufacturing Rates:
GST is largely related to manufacturing segment, it may incur loss.
Higher Loan Interest:
Companies taking business loans?may face higher interest rates and other complications