GST is a multi-stage, all-inclusive tax system that is levied on the sale of goods and services. The primary goal of this taxing scheme, which is applicable across India, is to reduce the cascading impact of other indirect taxes.
Let’s Have A Look
At The Disadvantages
As per some economists, GST in India will have a detrimental effect on the real estate sector. This will increase the cost of new homes by 8% and reduce demand by about 12%.
As per experts, CGST (Central GST) and SGST (State GST) are just new words for Central Excise/Service Tax, VAT and CST. As a result, there is no significant reduction in the number of tax layers.
Some retail items are now subject to a 4% tax. Garments and clothes may become more expensive after the implementation of GST.
The aviation sector will have to bear the brunt of this. Currently, the service tax on airfares ranges from 6% to 9%. With GST, this rate will go up to 15%, almost doubling the tax rate.
The adoption and migration to the new GST system will involve growing pains and education for the entire ecosystem.