Advantages and Disadvantages of GST
ADVANTAGES OF GST:-
1. The entire Indian market will be a unified market which may translate into lower business costs. It can facilitate seamless movement of goods across states and reduce the transaction costs of businesses.
2. In the GST system, taxes for both Centre and State will be collected at the point of sale. Both will be charged with the manufacturing cost. Individuals will be benefited by this as prices are likely to come down and lower prices mean more consumption, and more consumption means more production, thereby helping in the growth of the companies.
3. The tax price will come down and on which the manufacturer or retailer stole tax will fall short of it, this will bring about a lot of change in the Indian economy and India will be moving forward at very fast pace.
Also Read: GST V/s old taxation system
DISADVANTAGES OF GST:-
1. The government has not put GST tax on the petroleum company. Industries that require petroleum products for manufacturing cannot input for tax credits which will increase the final price.
2. Some Economist says that GST in India would impact negatively on the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent. Almost 140 countries have already implemented the GST including Australia, Canada, Germany, Japan, and Pakistan.
3. With the introduction of GST, the price of smartphones will increase. At present, you have to pay 12% tax on mobile which will increase to 18%.
4. Applying GST will also be costly to take the goods at a discount. For example, you have to pay tax on the item after the discount while doing online shopping, but now you have to give GST on the goods MRP.