Effects of GST

GST effects on Pharma and healthcare

Pharmaceutical products will see 12% GST as against earlier rate of 10%.The healthcare sector will remain exempt from the GST however the inputs by the healthcare sector will be taxed at 18% leading to rise in the operating costs.

GST effects on Brokers and equity investments

With the service tax being subsumed into your overall GST, the rate of GST on financial services stands modified from 15% to 18% per cent. a long-term investor’s perspective, this may not be too significant since the overall shift is just about 3 basis points. However, for short term traders, this 3 basis points additional cost will change the economics of churning their funds in the equity markets.


GST effect on Real Estate

The tax rate is not decided yet and it would be premature to comment on it at this point. The expectations are for real estate to be in the 12% bracket. However, the GST rate is not the only important factor.


Positive Impact of GST in India:

  • GST is a single taxation system that will reduce the number of indirect taxes. From now, a single taxation term would cover all of those indirect taxes.
  • The Prices of products and services would reduce, thus this system would prove to be beneficial for the people who are fed up of paying high prices.
  • This would reduce the burden from the state and the central government. With the introduction of GST, all indirect taxes would come under a single roof.
  • GST would not be charged at every point of sale like other indirect taxes so in this way, market would be developed.
  • Corruption-free taxation system. GST would introduce corruption-free taxation system.

    Negative Impact of GST in India:

  • The introduction of GST in the country will impact real estate market. This would increase new home buying price by 8% and reduce buyers’ market by 12%.

  • GST is a mystifying term where double tax is charged in the name of a single tax.

  • Most of the dealers don’t pay central excise tax and cheat the government by simply giving the VAT. But all of those dealers would now be forced to pay GST.

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