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    Impacts of GST

    Uploaded by

    Nikhil
    This document outlines the objectives of studying the effects of implementing the Goods and Services Tax (GST) in India on various industries and the challenges they faced. It discusses the goals of GST such as simplifying tax structures, minimizing rates and cascading effects. Both positive impacts like reduced costs and prices, and negative impacts like increased prices for some services are noted. Implementation challenges include lack of adaptation, training and clear mechanisms to prevent tax evasion. The methodology describes analyzing secondary sources to determine GST's impact on sectors like e-commerce, FMCG, automobiles, gold and real estate.

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    Impacts of GST

    Uploaded by

    Nikhil
    158 views3 pages
    This document outlines the objectives of studying the effects of implementing the Goods and Services Tax (GST) in India on various industries and the challenges they faced. It discusses the goals of GST such as simplifying tax structures, minimizing rates and cascading effects. Both positive impacts like reduced costs and prices, and negative impacts like increased prices for some services are noted. Implementation challenges include lack of adaptation, training and clear mechanisms to prevent tax evasion. The methodology describes analyzing secondary sources to determine GST's impact on sectors like e-commerce, FMCG, automobiles, gold and real estate.

    Original Description:

    The basic impacts of GST on Indian economy

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    This document outlines the objectives of studying the effects of implementing the Goods and Services Tax (GST) in India on various industries and the challenges they faced. It discusses the goals of GST such as simplifying tax structures, minimizing rates and cascading effects. Both positive impacts like reduced costs and prices, and negative impacts like increased prices for some services are noted. Implementation challenges include lack of adaptation, training and clear mechanisms to prevent tax evasion. The methodology describes analyzing secondary sources to determine GST's impact on sectors like e-commerce, FMCG, automobiles, gold and real estate.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    158 views3 pages

    Impacts of GST

    Uploaded by

    Nikhil
    This document outlines the objectives of studying the effects of implementing the Goods and Services Tax (GST) in India on various industries and the challenges they faced. It discusses the goals of GST such as simplifying tax structures, minimizing rates and cascading effects. Both positive impacts like reduced costs and prices, and negative impacts like increased prices for some services are noted. Implementation challenges include lack of adaptation, training and clear mechanisms to prevent tax evasion. The methodology describes analyzing secondary sources to determine GST's impact on sectors like e-commerce, FMCG, automobiles, gold and real estate.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    AIMS AND OBJECTIVE

    1. To study the effect of GST on various industries.


    2. To study the challenges faced by various industries after introduction of
    this new tax regime.

    SUMMARY
    This project is about the Goods and Services Tax (GST) which has been
    heralded as the biggest indirect tax reform in India after Independence.
    With this, enterprises, particularly SMEs, across a wide range of industries
    are caught in a state of flux. The comprehensive indirect tax GST will replace
    various other taxes such as Excise, Vat and Service Tax with a single tax
    structure. Driven by wide-ranging skepticism, several startups and SMEs are
    wary of the adverse impacts that came into the picture with the introduction
    of GST. According to various state governments the GST regime will benefit
    SMEs the most. As opined by industry experts, the much proclaimed benefits
    of eliminating the cascading effect of multiple central and state taxes and
    the ease of starting a business will impact them the most. However, market
    optimism aside, they are not very sure of the ways the new tax regime will
    affect their business and alter their bottom line. To comprehend the full
    repercussion of the tax reform, it becomes crucial to know the intricate
    aspects of GST and the associated tax reform in detail. In case of GST the
    positive and negative aspects can be identified with the help of its objective
    which is mentioned below.

    Objectives of GST:-

    1. Ensuring availability of input credit across the value chain

    2. Minimizing cascading effect of taxation

    3. Simplification of tax administration and compliance

    4. Harmonization of tax base, laws, and administration procedures across


    the country

    5. Minimizing tax rate slabs to avoid classification issues

    6. Prevention of unhealthy competition among states

    7. Increasing the tax base and raising compliance.

    Positive and Negative impacts of GST are:-


    Positive Impact of GST:

    A unified tax system removing a bundle of indirect taxes.


    Remove the cascading effect of taxes.
    Manufacturing costs tend to be reduced, hence prices of consumer goods
    likely to come down.
    Due to reduced costs some products like cars, FMCG, etc will become
    cheaper.
    A unified tax regime will lead to less corruption which will indirectly affect
    the common man.
    But, this is possible only if the benefit is actually passed on to the
    consumers.

    Negative Impact of GST:

    Services will become expensive e.g. Telecom, banking, airline etc.


    Being a new tax, it will take some time for the people to understand its
    implications.
    It is easier said than done. There are always some complications attached. It
    is a consumption based tax, so in case of services the place where service is
    provided needs to be determined.
    If actual benefit is not passed to consumer and seller increases his profit
    margin, the prices of goods can also see a rising trend.

    However, GST is a long term strategy and the positive impact shall be seen
    in the long run only.

    GST has certain implementation challenges which were need to be faced


    very efficiently and effectively for proper implementation the challenges are
    mention below.

    Implementation challenges:-

    1. Lack of adaptation

    2. Lack of trained staff

    3. Double registration can increase compliance and cost

    4. Lack of clear mechanism to control tax evasion

    5. Hard to estimate the exact impact of GST.


    METHODOLOGY:
    The purpose of conducting this research is to determine various effects of
    GST on different sector or industries and also to identify the objective behind
    introducing GST by government, various advantage and disadvantage of
    GST and problem faced during implementation and various problem faced by
    different sector due to introduction of new taxation law.

    Our topic of research is impact of GST on business survival. In this research


    we have used the secondary sources of data like journal, articles, news
    articles. For this research we have also used various researches conducted
    by the government. For this project our group members read various
    research articles and magazines and analyzed the impact of GST on various
    industries such as E-commerce, FMCG, automobile, gold industry and real
    estate. For this purpose our discussions with our Accountancy teacher Mrs.
    Meenakshi Kaul maam maybe regarded as the primary sources of data.

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