{"id":3701,"date":"2020-03-01T09:45:02","date_gmt":"2020-03-01T09:45:02","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3701"},"modified":"2020-03-01T09:45:02","modified_gmt":"2020-03-01T09:45:02","slug":"disadvantages-of-gst","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/disadvantages-of-gst\/","title":{"rendered":"DISADVANTAGES OF GST"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/#DISADVANTAGES_OF_GST\" title=\"DISADVANTAGES OF GST\">DISADVANTAGES OF GST<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"disadvantages-of-gst\"><span class=\"ez-toc-section\" id=\"DISADVANTAGES_OF_GST\"><\/span><strong>DISADVANTAGES OF GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-56-1.png\" alt=\"\" class=\"wp-image-5184\"\/><figcaption><strong>DISADVANTAGES OF GST<\/strong><\/figcaption><\/figure>\n\n\n\n<p>There are various <a aria-label=\"benefits of GST (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\" target=\"_blank\" rel=\"noreferrer noopener\">benefits of GST<\/a> in India. However, a tax reform of such magnitude comes with its teething problems. The following are the disadvantages of GST :<\/p>\n\n\n\n<p><strong>IT INFRASTRUCTURE<\/strong><\/p>\n\n\n\n<p>Since <a href=\"https:\/\/commerceiets.com\/features-of-gst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"GST (opens in a new tab)\">GST<\/a> is an IT-driven law, it cannot be sure whether all the states in India are currently equipped with infrastructure and workforce availability to embrace this law. Only a few states have implemented this E- Governance model. Even today some states use the manual VAT returns system.<\/p>\n\n\n\n<p><strong>HIGHER TAX BURDEN OF SME\u2019S<\/strong><\/p>\n\n\n\n<p>Earlier the small and medium enterprises had to pay excise duty only on a turnover that exceeded Rs. 1.5 crore every financial year. However, under the GST administration, businesses whose turnover exceeds Rs 40 lacs are liable to pay GST.<\/p>\n\n\n\n<p><strong>INCREASE BURDEN OF COMPLIANCE<\/strong><\/p>\n\n\n\n<p>The GST administration states that companies are required to register in all the states they operate in. This increases the burden on the business for excessive paperwork and compliance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-57-1.png\" alt=\"\" class=\"wp-image-5185\"\/><figcaption><strong>DISADVANTAGES OF GST<\/strong><\/figcaption><\/figure>\n\n\n\n<p><strong>PETROLEUM PRODUCTS DON\u2019T FALL\nUNDER THE GST SLAB<\/strong><\/p>\n\n\n\n<p>Petrol and petroleum products\nhave not been included in the scope of GST until now. States levy their taxes\non this sector. Tax credit for inputs will not be available to these industries\nor those related industries.<\/p>\n\n\n\n<p><strong>COACHING OF TAX OFFICERS<\/strong><\/p>\n\n\n\n<p><strong>T<\/strong>here is inadequate training that is provided to the\nGovernment officers for practical usage and implementation of such systems\nsince the GST administration heavily banks on information technology.<\/p>\n\n\n\n<p><strong>INCREASED IMPLEMENTATION COST<\/strong><\/p>\n\n\n\n<p>The overall process of ensuring GST compliance and tax filing has led to an increase in the implementation cost for the businesses. This cost refers to the expenditure or investment in resources like computers, accounting (GST), software or training initiatives for GST experts. Moreover, the overall cost of doing business mounted in the initial few months of GST implementation.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-66-1.jpg\" alt=\"\" class=\"wp-image-5186\"\/><figcaption><strong>DISADVANTAGES OF GST<\/strong><\/figcaption><\/figure>\n\n\n\n<p><strong>RISE IN OPERATIONAL COSTS<\/strong><\/p>\n\n\n\n<p>GST has transformed the way in\nwhich taxes are paid. Moreover, to achieve compliances, businesses are required\nto depend on services by professional GST consultants. This has led to an\nadditional cost for smaller businesses for hiring GST consultants leading to\noperational costs.<\/p>\n\n\n\n<p>Implementation of GST has led to\nshortage of available funds. Traders have been facing issues in claiming tax\nrefunds or transitional refund owing to complicated procedures.<\/p>\n\n\n\n<p><strong>ADVERSE IMPACT ON SOME INDUSTRIES<\/strong><\/p>\n\n\n\n<p>Some tax experts believe the GST\nsystem could have negative effects as certain products have become costlier.\nFor instance, GST would add up to as much as 8 percent to the cost of new homes\nand minimise the demand by about 12 percent. Similarly, the tax levied on some\nretail products at present is only four percent tax. However with GST, garments\nand clothes are likely to get expensive.<\/p>\n\n\n\n<p>Similarly, service sector like banks also feel the pinch. The banking industry is instrumental in the process of export of services or goods. Before the GST regime, a service tax @ 14% was levied on the banking transactions. However after the GST implementation, the rate has increased to 18%, thereby increasing the transaction costs, especially in those imports or exports with huge transactions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/01\/download-67-1.jpg\" alt=\"\" class=\"wp-image-5187\"\/><figcaption><strong>DISADVANTAGES OF GST<\/strong><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><strong>CONCLUSION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>GST in India was a sweeping reform and benefits of GST and has changed the way businesses are conducted. Businesses are being included in the formal economy through GST implementation. GST and its benefits have provided long term returns for the Indian economy on a large scale which have been welcomed as a new change by all the stakeholders.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><td><strong>Also Study:<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/features-of-gst\/\">GST and its features<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/history-of-gst\/\">History of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/advantages-of-gst-in-india\/\">Advantages of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/\">Disadvantages of GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/constitutional-aspect-of-gst\/\">Constitutional aspects of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liability-of-tax-payer\/\">Liability of tax payer<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-gst\/\">Objectives of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-igst\/\">IGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cgst\/\">CGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-council\/\">GST Council<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/utgst-full-form\/\">UTGST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/sgst\/\">SGST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/levy-and-collection-of-gst\/\">Levy and collection of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composition-levy\/\">Composition Levy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-gst-registration\/\">Online GST Registration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exemptions-under-gst\/\">Exemptions under GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/reverse-charge-in-gst\/\">Reverse Charge in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/taxable-supply\/\">Taxable supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/time-of-supply\/\">Time of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/value-of-supply\/\">Value of supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/place-of-supply\/\">Place of supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-state-supply\/\">Inter-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/intra-state-supply\/\">Intra-state supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/what-is-composite-supply\/\">Composite supply<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/mixed-supply\/\">Mixed supply&nbsp;<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/composite-and-mixed-supply\/\">Composite and mixed supply<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/online-payment-of-gst\/\">Online payment of GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/\">How to Claim TCS in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/how-to-claim-tds-in-gst\/\">How to claim TDS in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/input-tax-credit-under-gst\/\">Input tax credit under GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/tax-invoice-under-gst\/\">Tax Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/debit-note\/\">Debit Note in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/credit-note\/\">Credit Note in GST<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revised-invoice-in-gst\/\">Revised Invoice in GST<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Supplementary Invoice<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/e-way-bill-in-gst\/\">E-Way bill in GST<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/gst-returns\/\">GST Returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/goods-and-service-tax-network\/\">GSTN (Goods and Service Tax Network)<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-suvidha-provider\/\">GST Suvidha Provider<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/gst-portal\/\">GST Portal<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"DISADVANTAGES OF GST IN INDIA\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><figcaption>DISADVANTAGES OF GST IN INDIA<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>DISADVANTAGES OF GST There are various benefits of GST in India. However, a tax reform of such magnitude comes with its teething problems. The following are the disadvantages of GST : IT INFRASTRUCTURE Since GST is an IT-driven law, it cannot be sure whether all the states in India are currently equipped with infrastructure and&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/disadvantages-of-gst\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;DISADVANTAGES OF GST&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3703,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[229],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3701"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3701"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3701\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3703"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}