Goods and Service Tax (GST) in IndiaDec 18, 2014
Goods and service tax (GST) is the buzzwords in recent times. What is it and why we need to know about this?
GST is unification of various service taxes. It will help make India as a common market. Many kinds of sectors will benefits from it and overall it is expected that GDP of the country will benefits by 1% approx. 1% GDP growth is the huge difference. Sectors to benefits most from GST are Consumer Durable, Logistics, FMCG and others.
This blog post is just a collection of information for you to read.
What is GST? It is an indirect tax that will lead to the abolition of all other taxes such as octroi, central sales tax, state-level sales tax, excise duty, service tax, and value-added tax (VAT). Both the state and the central governments will impose GST on almost all goods and services produced in India or imported into the country.
A blog post about how GST can help manufacturers and logistics
A site developed for GST by someone. But many info are not updated
Few things like Alcohol, Petrol etc will come under GST or not is changed in recent time. Recently Cabinet has approved GST.
UBS expects following sectors and companies to benefit from implementation of GST Bill.
1) Ceramic Tiles - Kajaria;
2) Consumer Durables - Bajaj Electricals, Havells, TTK Prestige;
3) FMCG/ packaged foods - Britannia, Dabur;
4) Apparel - Page, Raymond;
5) Batteries - Exide.
Logistics solutions companies may also benefit.
Who will benefits from GST?
According to the brokerage, organized players such as Exide Industries , Amara Raja Batteries, Jubilant FoodWorks, Asian Paints, Pidilite Industries , Britannia Industries, ITC and Marico are expected to benefit from the bill.
Century Plyboards India Ltd, a leading player in the fast growing plywood and laminate segment, with an overall share of 25% of the organised plywood market. For procuring wood, the plywood industry doesn’t pay any excise duty or VAT. Therefore, there is no CENVAT credit available to the plywood manufacturers. As a result, the scope for savings is huge if the excise duty is evaded (that is why the plywood segment has more unorganised players, who form 70% of the segment). However, once the GST comes into force, the tax advantage currently enjoyed by the unorganised players would diminish sharply and the market share of the organised players would surge.
How GST Will Impact India's Leading Companies
Companies won't Benefit from GST:
- Page Industries: GST will increase the tax burden, which the company says will be passed on to the consumers.
- Bharti Airtel, Idea Cellular: Increase in service tax under GST will be passed on to the consumers.