Advantages and Disadvantages of GST

Advantages and Disadvantages of GST

GST components :

1. State GST collected by State government (SGST)
2. Central GST collected by Central Government (CGST)
3. Integrated GST collected by Central Government (IGST)

GST has come with a lot of advantages:

1. Hassle-free tax filing as invoicing would be completely online
2. Wider tax base leading to better revenue collection
3. A Boost To ‘Make In India.’
4. Ease to e-commerce as state restrictions and levies would be reduced.
5. Reduction in product price
6. Increased govt revenue
7. less record keeping and transparent crediting system
8. lean and simplified taxation structure.

Disadvantages Of GST :

  1. The Service Tax in India is now 15% but the recommended GST is about 18-20%.

   2. All the services will be Costlier and that is one of the Disadvantages of GST.

   3. Where are some retail stocks where the Tax rate is only 4 percent but with GST it will be costlier like Garments and cloths

   4. Business will be controlled by the center and state so it may be some complicated for the businessman.

   5. All assets will be online and some fines are like criminal activity.

   6. GST is also producing three type of taxes and all must be maintained and this not working too easy for small Businessman.

Hope it Helps :)

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