GST & IT AFFECTS IN INDIAN MARKETPLACE

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GST and IT Affects In Indian Marketplace
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Indian Market is one of the biggest and most
dominating market in the world not only in
offline but also in online. Global entrepreneurs
or e-retailers are seeking to the Indian market
for expand their business. According to the
latest report, Indian Online Market is expected
to touch 1 trillion in 2020. And, today we are
discussing about GST impact in Indian Marketplace
but firstly, we should have to know What exactly
is GST? or Whom GST replace?
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Goods and Services Tax(GST)
GST simply Goods and Service Tax, which
implemented July 1, 2017 midnight in India by
Former President Pranab Mukherjee and current
Prime Minister Narendra Modi to get more user
friendly of Indian Market and removed the lots of
VAT or Service Tax in to GST with One Nation,
One Tax concept.

1. Central Goods and Service Tax also known as
   CGST, which is levied by the Central Government
   and collected tax revenue by CGST on all goods
   and services.
2. State Goods and Service Tax also known as SGST,
   which is levied by the State Government and
   collected tax revenue only by SGST.
3. Integrated Goods and Services Tax also known as
   IGST, which is implemented by Central
   Government for inter-state supply of goods and
   services and collected tax revenue is divided
   into both Central and State Government in their
   fixed rates.

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The Positive Impact of GST
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• GST REDUCED TAXES

Before implemented GST, if a trader buys goods
and services from manufacturer then he/she have
to paid VAT and Excise duty and then he/she sells
goods and services to the consumers then they
charged only VAT from consumers and added excise
duty to the cost, but now GST reduced lots of the
taxes and it gives benefit.

• Easy to maintain the Accounts or regular Book
  Keeping

After implemented GST reduced lots of the burden
and easy to maintain daily basis accounts or
regular book keeping for large scale retailer and
small scale retailer as well. Before implemented
GST, it is quite difficult to calculate different
types of indirect taxes but now, GST reduced many
taxes in one form.
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• Growth And Better Opportunities

The door is open for the growth for you and for
your business as well. After enable GST, the
opportunities is available for you, if you want
to spread your business activities in different
states as well then GST is for you. Before GST,
if you want to target the audience in different
states or Intra-State Trade, then you have to
faced Central Sales Tax (CST) some indirect
taxes lots of the documentation and sometimes
legal authorities seized your consignments while
transferred to other state due to some lack of
documents. But now, GST replaced CST or Indirect
Tax in the form of IGST (already mention above).
You dont need to pay extra taxes while transfer
the goods in different states of India.
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• Faster Delivery

Through GST, it is easier to deliver goods with
more consistency for the online retailers and
offline retailers as well at the right time
because before GST, sometimes tax department
forfeited the goods at the time of inter-state.
This results delayed deliveries and sometimes
consumers denied to accept the goods if the
product not delivered at the right time. Thats
why, many online and offline retailers had to
suffer losses.
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The Negative Impact of GST
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• REGISTRATION SHOULD BE REQUIRED IN EVERY STATE

Under the GST Law, it is mandatory to get
registered in every state where you are selling
or delivering the goods or products. If you are
supplying any goods or products in Mumbai and
Delhi, then you have to get the separate GSTIN
number of both the states.

• DUAL CONTROL TAX

GST is made up for relieving the different types
of taxes and reduced the lots of taxes burden for
selling any goods or products but in reality, GST
is a dual tax system is divided into 2 categories
state and central government both collect the tax
separately.
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• RETURNS TO BE FILED ON MONTHLY BASIS

After implemented GST, there is 36 returns in a
year and you also have to close your books on a
monthly basis. This activity spent more time
consuming of a vendor and generates more work
load. Instead, of other productive work which
helps to generate earning, make strategy to reach
the customer. And, If you missed to file any
return, you have pay Rs.100 as a penalty.

• NOT USER-FRIENDLY FOR EVERYONE

Many Retailers and consumers are not known about
the GST. They still have a questions regarding
GST tax slab rate. They didnt get any proper
guidance. Many small vendors are confused that
how to manage accounts and close every month? How
to file returns under GST?
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CONCLUSION
GST is better option rather than Indirect Taxes
and CST (at the time inter-state) but it hurts
the peoples business. Thats why former governor
RaghuRam Rajan said an interview to ET Now, GST
will impact in a positive way in the long term
results. He also advised to Finance Minister Arun
Jaitley to not to cut rates. To make daily basis
accounts or manage book keeping, small vendors or
e-retailers have to be ready yourself for file or
return GST. You have to take guidance or consult
any Chartered Accountant (CA) or any Service
providers who have a knowledge regarding GST.
And, make your business GST ready.
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