GST rates in India are highly complicated. There are many tax exemptions, deductions and exemptions that need to be added to the list when it comes to calculating GST rates.
GST is a complex tax structure in India. The Tutorial will discuss the pros and cons of GST rate changes for various business sectors.
Disadvantages of GST :
1. GST Scheme has increased the cost of operation
The GST has increased the costs of some businesses. This tax on imports has led to increases in prices for food, housing and electricity. The GST is a significant cost for companies operating in India. For example, an average Indian family pays around Rs 19000/- per month towards indirect taxes imposed on imported goods including goods purchased from across the border. This tax has also resulted in more expensive supplies of oil and natural gas to power sector critical infrastructure projects.
2. Increased tax liability on SMBs
There is no doubt that SMB's are facing increased tax liability. While this is not very much of a problem for large corporations, it complicates their daily tasks when they are dealing with tax compliance.
A question arises what to do when SMBs are faced with increasing tax liability. Here are three solutions that can be considered:
3. Enhance burden of compliance
Compliance is a burden that we all have to bear and it can be very hard to manage. We all know what it feels like when we get really stressed and we just want to get away from the pressure. When this happens , we look for ways to relieve ourselves of the stress.
4. Penalties for non-GST-compliant firms
The GST is an indirect tax levied on goods and services that are consumable or partly consumable, or services that are provided for the provision of goods or any part thereof, minus VAT.
It has been suggested by some analysts that GST may be causing a loss of revenue for India. Some have even went as far as to say that it would limit Indian creativity and damage our economy due to higher costs associated with providing services post-GST implementation, according to a report titled "Non-GST companies bear 80% of taxes".
There are two ways in which GST can be implemented: through direct taxes (inflation) and through indirect taxes (CIT).