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 -andnbsp;GST Impacts on Manufacturing and retail sector,andnbsp;GST Impacts on Entertainment and hospitality,andnbsp;GST Impacts on IT and telephone,andnbsp;GST Impacts on Service Sector,andnbsp;GST Impacts onandnbsp;Infrastructure Industry and real estate,andnbsp;GST Impacts onandnbsp;Banking Sector, financial services and insurance,andnbsp;GST Impacts onandnbsp;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 and 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 and 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 and Development activity etc.

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