{"id":6145,"date":"2023-08-28T15:48:18","date_gmt":"2023-08-28T15:48:18","guid":{"rendered":"\/blog\/?p=6145"},"modified":"2024-09-24T13:11:52","modified_gmt":"2024-09-24T07:41:52","slug":"positive-impact-of-gst","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/positive-impact-of-gst\/","title":{"rendered":"Positive Impact of GST"},"content":{"rendered":"\n

The implementation of the Goods and Services Tax (GST) may seem like another change in the tax structure. However, the new GST regime is expected to have a multifaceted impact on all sectors across the nation. <\/p>\n\n\n\n

Know More<\/a><\/div>\n\n\n\n

GST\nis not simply a modification of the present tax structure. It is a huge change\nand will impact businesses significantly. At the outset, the new tax regime\nwill affect logistics, pricing, supply change, taxation, finance and accounts,\nprocurement, and other elements of any business.<\/p>\n\n\n\n

Here\nare three positive impacts GST is expected to have on the nation.<\/p>\n\n\n\n

1. Promotion\nof organized trade<\/em><\/strong><\/p>\n\n\n\n

The\ndifferent taxes levied by different states make the entire procedure complex\nand cumbersome. Since the existing tax structure is skewed where the Central\nSales Tax (CST) credit is not available, the burden is directly passed on to\nthe recipients. This results in price wars due to the intense competition\nresulting in lower profit margins. GST will eliminate CST ensuring seamless\ncredit flow between states. Furthermore, the IGST tax credit will be nationally\navailable providing equal opportunities to businesses across the country. The\nnew opportunities will impact business\nloans as demand for institutional funding increases to meet these growth\npossibilities.<\/p>\n\n\n\n

In\nthe present tax structure, traders often indulge in unorganized trades to avoid\nCST levy on their transactions. However, after the implementation of GST,\ntraders would not be able to avail IGST tax credit without valid invoices. As a\nresult, organized trades will see a positive growth in the new era.<\/p>\n\n\n\n

2. Warehouse\nre-engineering and supply chain restructuring<\/em><\/strong><\/p>\n\n\n\n

Most\ngoods pass through multiple layers of value chains between the manufacturers\nand end users. The typical value chain includes the manufacturer, wholesaler,\nretailer, and the consumer. Within this chain, warehousing initiates branch\ntransfer among states to avoid the CST levy.<\/p>\n\n\n\n

The\ninput tax credit availability eliminates the need for companies to maintain\nwarehouses in different states to avoid tax liabilities. Large organizations\nhave the option of consolidating smaller warehouses in different states to more\nstrategically located facilities. <\/p>\n\n\n\n

3. Improved\nproductivity and efficiency<\/em><\/strong><\/p>\n\n\n\n

GST implementation will eliminate state border checkpoints that increase the transit times of trucks. The new indirect tax regime is expected to unify the entire Indian market through the seamless flow of goods within the nation. Although all checkpoints may not be eliminated, the lesser compliance requirements will reduce transit times. As businesses gear up for improved efficiencies and greater opportunities, commercial loan providers also expect to witness a growth in the demand for funding. Such loans help businesses to acquire funds to expand their operations and meet working capital requirements. Borrowers may opt for flexi installment schedules based on the expected cash flows of their operations. Such flexibility ensures companies face no difficulties in servicing the business loan<\/a> amount. The entire procedure is hassle free and is completed within a few days. All businesses will be able to advantage of the opportunities offered by GST. <\/p>\n\n\n\n

Apply Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The implementation of the Goods and Services Tax (GST) may seem like another change in the tax structure. However, the new GST regime is expected to have a multifaceted impact on all sectors across the nation.<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6149,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-6145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-business"],"yoast_head":"\nPositive Impact of GST - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Positive effects of GST: GST fosters economic growth, increases government revenue, and reduces the tax burden on manufacturers, encouraging production efficiency and competitiveness.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Positive Impact of GST - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Positive effects of GST: GST fosters economic growth, increases government revenue, and reduces the tax burden on manufacturers, encouraging production efficiency and competitiveness.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/positive-impact-of-gst\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T15:48:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-24T07:41:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/Tata-Capital-38-Positive-Impact-of-GST-sm-100717-AJPR.png\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/positive-impact-of-gst\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/positive-impact-of-gst\/\",\"name\":\"Positive Impact of GST - 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