GST Impact of GST on Service Sector in India

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As per the given information, you will get know features of Impact of GST on Service Sector in India, Government’s Revenue, Costlier Services, Notices from Taxation Authorities, Registration of Place of Business etc.

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Impact of GST on Service Sector in India:

Impact of GST on Service Sector in India DEVELOPED BY SAG INFOTECH

GST Impact on Service Sector:

GST Impact on Service Sector The service sector attracts lots of foreign investment along with the Gross domestic product, into the economy of India as the sector is responsible for generating a heavy employment scenario.  The Indian service sector has the list of various industries which include trade, hotel and restaurants, transport, storage, communication, financing, insurance, real estate, business services, community and the construction services.

The speculated areas are assumed to have changes after the GST implementation:

The speculated areas are assumed to have changes after the GST implementation Government’s Revenue:-    As much of revenue which was earlier left in the region of Jammu Kashmir will get to be collected after the implication of GST as in the laws previously the central government was not enjoying any kind of revenue benefits from the state but after the GST, there are changes and extension by which the central government will have the rights over the service taxes of Jammu Kashmir also.

THE SPECULATED AREAS ARE ASSUMED TO HAVE CHANGES AFTER THE GST IMPLEMENTATION :

THE SPECULATED AREAS ARE ASSUMED TO HAVE CHANGES AFTER THE GST IMPLEMENTATION  Costlier Services:- In the present scenario of taxation, service tax is applicable at the rate of 15% on Services provided which includes 0.5% for Swatch Bharat Cess and 0.5% for Krishi Kalyan Cess and now the services are expected to be higher at the taxation rate of around 18% to 26% making an overall increased effects on the services.

Slide6:

Notices from Taxation Authorities:- In the present scenario of taxation, both Central and State Govt. have right to collect the tax according to the preferences given in list I, II and III in the Constitution and because of that sometimes it becomes so complicated to find out to pay taxes to which department in regards to goods and services similar works contract, software etc. having conflicts between Central and State Government.

Slide7:

Registration of Place of Business:- Currently there are centralized registration provisions under Service tax that indicate provider of services can render services from any site in India after getting registered once but in GST regime centralized registration will not be accessible to the dealer  requires to get registered with that particular state Govt where he has the provision for registering business site office as well from where he is expected to provide services.

Take note of things that will Impact the services sector on GST:

Take note of things that will Impact the services sector on GST Overview of existing indirect taxes on services and their subsumption in GST  Threshold exemption Time of supply of services Place of supply of services Valuation under GST

Conclusion:

Conclusion The expected GST implication is known to have a better economic transformation but in the case of service, the economy will see a higher taxation reform for the country. Source:  GST Impact on Service Sector  

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