Sales Tracking App

2. A wait of a decade came to an end when on August 3, 2016, the GST Bill was passed by the Upper House of the Parliament of India. This bill marks an important historical event as it is said to be one of the biggest tax reforms to have been introduced in India since independence. GST is expected to bring into existence the ‘one nation one tax’ system. Depending on the type of industry concerned, GST is expected to have different effects. This article provides an overview on the impact that GST projects on various industries. Whether the industry belongs to the manufacturing, distributing, retailing, or service sector will define the first level of differentiation. Let’s look at them one by one. Impact of GST on Manufacturers, Distributor and Retailers GST is expected to introduce a boost in the competitiveness and performance of the manufacturing sector in our country. And with the Make in India campaign gaining momentum, this sector is going to flourish. The major concern that this sector was facing are the multiple indirect taxes. These taxes increase the administrative costs for manufacturers and distributors. But with GST in place, the compliance burden is expected to ease which will aid in the growth of this sector.

3. Impact of GST on Service Providers  According to data for March 2014, the country witnessed 12,76,861 service tax assesses. Out of these, only the top 50 paid more than 50% of the tax collected. The majority of the tax in the service domain is borne by companies that operate in the IT services, telecommunication, insurance, business support, and banking and financial sectors. These service-based businesses already work in an unified market. This means that even though they will witness some amount of ease in compliance burden, there will not be much change in the way they function even after the implementation of GST. Sector-wise Impact Analysis  eCommerce: GST proposes a tax collection at source (TCS) mechanism by law and eCommerce companies are not too happy about it. GST would indeed help this sector to grow but the long term effects are still under speculation. Pharma: GST is expected to create an organic market for generic drug makers and will boost the medical tourism. Also, the sector may witness a tax respite making healthcare accessible by all.

4. Telecommunications: Prices are expected to come down upon implementation of GST. There will be reduction in costs as GST will eliminate the requirement to set up state-specific entities. • Agriculture: This sector is the largest GDP contributor in India. GST will help to ease up transportation issues across state lines and help in the establishment of India’s first National Market for agricultural goods. The verdict is not out in the case of prices of agricultural goods. • Automobiles: Currently the automobile sector has multiple taxes such as excise, VAT, sales tax, road tax, motor vehicle tax, registration duty, etc. GST is expected to eliminate multiple taxes and just levy a single tax. The industry has a bright future! • Startups: Startups tend to expand to different cities after certain period of operation and earlier with each state having different VAT laws, the procedure was cumbersome. With GST, all these will be done with which would encourage more people to start their companies (startups). • BFSI: Financial services like fund based, fee-based, and insurance services are expected to witness major changes upon GST implementation. Considering the type and volume of services offered by banks and NBFC, GST compliance would be very difficult to implement, which demands that this sector is in for numerous changes. Till the GST is implemented in full fledged way across the country, we can just speculate the changes that is expected to bring into the economy of our nation. But we hope we were able to provide some kind of introduction through this article. Do let us know your thoughts in the comments. • Visit more info: http://www.tradedesk.in/field-sales-app/location-tracker/