{"id":6152,"date":"2017-07-17T06:32:44","date_gmt":"2017-07-17T06:32:44","guid":{"rendered":"\/blog\/?p=6152"},"modified":"2024-12-18T15:49:25","modified_gmt":"2024-12-18T10:19:25","slug":"negative-impact-of-gst","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/negative-impact-of-gst\/","title":{"rendered":"Negative Impact of GST"},"content":{"rendered":"\n

The Goods and Services Tax (GST) was rolled out on 1st<\/sup> July 2017. The transition from the previous tax regime has proceeded smoothly without any major impediments.<\/p>\n\n\n\n

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

The\nGST has been launched to achieve a goal of \u201cone nation one tax\u201d. However, there\nhave been some hurdles. Here are five negative impacts of GST after its\nimplementation.<\/p>\n\n\n\n

1. Movement\nof heavy vehicles<\/em><\/strong><\/p>\n\n\n\n

The\nnew tax regime is causing some confusion and has resulted in the decline in the\nnumber of trucks moving from one state to another. However, in most states,\noctroi, sales tax, and other check posts have been removed after the roll out\nof GST. This has reduced the logistics and transportation costs for companies,\nthus providing excellent growth opportunities. Several companies now opt for a business loan to expand their\noperations to different states under the single tax regime.<\/p>\n\n\n\n

2. Tax\non sanitary napkins<\/em><\/strong><\/p>\n\n\n\n

One\nof the biggest criticisms against GST is the 18% tax that will now be levied on\nsanitary napkins. A huge impact of this tax would be on the majority of the\nfemale population of India.<\/p>\n\n\n\n

3. Real\nestate prices<\/em><\/strong><\/p>\n\n\n\n

The\nimplementation of GST may significantly affect the real estate market. Buyers\nwill now have to pay an 18% tax on real estate services. As a result, the\nmarket for real estate is estimated to decrease after GST.<\/p>\n\n\n\n

4. Service\ntax sector to become costlier<\/em><\/strong><\/p>\n\n\n\n

Before,\nGST was implemented service tax was levied at the rate of 15%. However, the new\napplicable rate has increased to 18%. This would increase the costs for\nfinancial facilities, such as business\nloans, home loans, and others. Furthermore, the insurance premiums and\ninvestments would also become costlier due to higher GST rate.<\/p>\n\n\n\n

5. Air\nticket prices to increase<\/em><\/strong><\/p>\n\n\n\n

Non-economy\nclass tax levy on air tickets was 9% before GST. In the new tax regime, the\nrate would increase to 18%. This would directly increase the air ticket prices\nby 9% to 12%. This price hike would have to be paid by the consumers, making\nluxury travel more expensive.<\/p>\n\n\n\n

6. Higher\nprices for luxury products<\/em><\/strong><\/p>\n\n\n\n

Branded\njewelry and clothes, and telecom services would become expensive in the GST\nregime. This is because the GST rate for luxury products is higher than the\napplicable rates in the pre-GST era.<\/p>\n\n\n\n

Although there may be certain transition issues, most experts have welcomed the implementation of GST. The new tax era would replace a large number of indirect taxes. This would make the tax structure simpler and ensure greater compliance with the regulations. As a result, the economy is expected to become globally competitive opening up several opportunities for companies. The financial institutions expect to see an increase in the number of commercial loan<\/a> borrowers as they take advantage of new opportunities in the GST regime.<\/p>\n\n\n\n

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

The Goods and Services Tax (GST) was rolled out on 1st July 2017. The transition from the previous tax regime has proceeded smoothly without any major impediments.<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":6154,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"class_list":["post-6152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-business"],"yoast_head":"\nNegative Impact of GST - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Find out the negative impact of GST, including issues with vehicle movement, tax on sanitary napkins, higher real estate costs, air ticket price hikes, and luxury product expenses.\" \/>\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=\"Negative Impact of GST - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Find out the negative impact of GST, including issues with vehicle movement, tax on sanitary napkins, higher real estate costs, air ticket price hikes, and luxury product expenses.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/negative-impact-of-gst\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2017-07-17T06:32:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-18T10:19:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/Tata-Capital-39-Negative-Impact-of-GST-sm-110717-AJPR.jpg\" \/>\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\/jpeg\" \/>\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\/negative-impact-of-gst\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-business\/negative-impact-of-gst\/\",\"name\":\"Negative Impact of GST - 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