Disadvantage of GST or Goods and Services Tax

Posted by TaxGuru India on June 27th, 2017

People seem to get confused about GST. There are so many information’s that are available and are very puzzling. According to an assessment it is found that all of the information‘s are not right. There are little bit of percent that is right and rest other are not true in actual way. Goods and Service Tax India is now being resemble a book, and individuals are found to passes their comment on it. All the indirect tax is levied and turn into one tax that is GST. This tax is also applicable for the purpose on any kind of national level services and goods. After induction of the GST in the market, Indian products price are being viable in both of the international and domestic market.

 There are various disadvantages that have to be faced due to start on the new GST system, some of them are mentioned below:-

• Operating cost is becoming high:- There are so many small enterprises  available in the market that are not paying taxes due to cost savings, and these type of organizations are not maintaining the IT file . Only for this particular assessment small companies are rushing to hire an expert for the same that are costing extra.
• Registration is must for different states: - according to the new GST system, all of the business has to register for operating in the different states. This is an extra conformity for all.
• Tax burden is being high for those that are dealing with manufacturing: - SMEs who are dealing with any kind of manufacturing, has to spend more for maintaining GST.As per existing law individuals has to pay only the cut out duty, if that person’s turnover is more than one crore fifty lakhs in a year.
• Need to change the business software also: - most of the companies are found to filling the ERP by using the existing software that is already integrates with them from previous.
• Except any kind of petroleum products all are in under GST system: - from the starts on this new GST process, all of the petroleum products are as off from the tax. States are decided to charge their own taxes in this.
• Registration of GST implementation in the mid of the year is becoming very complicate: - GST will go to be introduced in themonth of July 2017. Already existing tax is ongoing from the starting of the financial year. Rest of the month from July onwards new tax will be calculating with the new system.
• There are loads of issues are arising for Ecommerce type due to this new GST process:- there are numerous companies are in the market that are selling their product through their own website, or using third party methods for the same across the India. According to the new GST rules those companies has to registered their business separately for different states.

Finally once it commences it  would  become very easy to manage as because of its transpiring nature. It can obviously outrank the previous concept of Service Tax India. While it implements once, it brings a new growth for Indian economy.