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GST – Analysis and Opinions

Updated on :  

08 min read

GST has brought in ‘one nation one tax’ system, but its effect on various industries is slightly different. The first level of differentiation will come in depending on whether the industry deals with manufacturing, distributing and retailing or is providing a service.

GST Analysis and Opinions

Impact of GST on Manufacturers, Distributor, and Retailers

GST is a boost competitiveness and performance in India’s manufacturing sector. Declining exports and high infrastructure spending are just some of the concerns of this sector. Multiple indirect taxes had also increased the administrative costs for manufacturers and distributors and with GST in place, the compliance burden has eased and this sector will grow more strongly.

But due to GST business which was not under the tax bracket previously will now have to register. This will lead to lesser tax evasion.

Impact of GST on Service Providers

As of March 2014, there were 12, 76,861 service tax assessees in the country out of which only the top 50 paid more than 50% of the tax collected nationwide. Most of the tax burden is borne by domains such as IT services, telecommunication services, the Insurance industry, business support services, Banking and Financial services, etc. These pan-India businesses already work in a unified market and will see compliance burden becoming lesser. But they will have to separately register every place of business in each state.

Sector-wise Impact Analysis


In a vast country like India, the logistics sector forms the backbone of the economy. We can fairly assume that a well organized and mature logistics industry has the potential to leapfrog the “Make In India” initiative of the Government of India to its desired position.


The e-commerce sector in India has been growing by leaps and bounds. In many ways, GST will help the e-com sector’s continued growth but the long-term effects will be particularly interesting because the GST law specifically proposes a Tax Collection at Source (TCS) mechanism, which e-com companies are not too happy with. The current rate of TCS is at 1%.


On the whole, GST is benefiting the pharma and healthcare industries. It will create a level playing field for generic drug makers, boost medical tourism and simplify the tax structure. If there is any concern whatsoever, then it relates to the pricing structure (as per latest news). The pharma sector is hoping for a tax respite as it will make affordable healthcare easier to access by all.


In the telecom sector, prices will come down after GST. Manufacturers will save on costs through efficient management of inventory and by consolidating their warehouses. Handset manufacturers will find it easier to sell their equipment as GST has negated the need to set up state-specific entities, and transfer stocks. The will also save up on logistics costs.


The Indian textile industry provides employment to a large number of skilled and unskilled workers in the country. It contributes about 10% of the total annual export, and this value is likely to increase under GST. GST would affect the cotton value chain of the textile industry which is chosen by most small medium enterprises as it previously attracted zero central excise duty (under optional route).

Real Estate

The real estate sector is one of the most pivotal sectors of the Indian economy, playing an important role in employment generation in India. The impact of GST on the real estate sector cannot be fully assessed as it largely depends on the tax rates. However, the sector will see substantial benefits from GST implementation, as it has brought to the industry much-required transparency and accountability.


The agricultural sector is the largest contributing sector the overall Indian GDP. It covers around 16% of Indian GDP. One of the major issues faced by the agricultural sector is the transportation of agri-products across state lines all over India. GST will resolve the issue of transportation. 


The FMCG sector is experiencing significant savings in logistics and distribution costs as the GST has eliminated the need for multiple sales depots. 


Freelancing in India is still a nascent industry and the rules and regulations for this chaotic industry are still up in the air. But with GST, it will become much easier for freelancers to file their taxes as they can easily do it online. They are taxed as service providers, and the new tax structure has brought about coherence and accountability in this sector.


The automobile industry in India is a vast business producing a large number of cars annually, fueled mostly by the huge population of the country. Under the previous tax system, there were several taxes applicable to this sector like excise, VAT, sales tax, road tax, motor vehicle tax, registration duty which will be subsumed by GST.


With increased limits for registration, a DIY compliance model, tax credit on purchases, and a free flow of goods and services, the GST regime truly augurs well for the Indian startup scene. Previously, many Indian states had different VAT laws which were confusing for companies that have a pan-India presence, especially the e-com sector. All of this has changed under GST.

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All Articles

  1. GST on factoring arrangements becomes crucial to understand with the growing importance of this financing option in India. Read on to know more.
  2. Branch transfer implies transferring materials from one location to another in the same organisation. GST applies to branch transfers as well.
  3. GST rate change can impact the treatment of unutilised ITC or input tax credit. Read on to get complete details about the treatment with examples.
  4. Google Ads is an online advertising platform from Google. Know how online promotions via Google Ads work along with tax implications
  5. Have you wondered what is GST treatment for sellers on e-commerce platforms such as Flipkart, Amazon and Meesho? Read on for complete details
  6. GST on EV charging is a much-debated subject with the rising popularity of use of electric vehicles in India. Know completely about its taxation and ITC
  7. GST on brick is treated differently. The GST Council has announced key changes in its taxation as well as provided the composition scheme.
  8. GST applies to automobiles, including cars. Under GST, there is no distinction between new goods and second-hand goods. Learn more.
  9. Various government and private organisations conduct sporting events. Know its taxability under the GST law along with the tax rate.
  10. This article discusses the applicability of GST on printing of answer booklets or answer copies and Advance Rulings issued regarding the same.
  11. GST law doesn't define crypto or digital assets. Check the definition of virtual digital assets introduced in this finance budget. Know how it's taxed
  12. Yoga and spiritual activities for physical and mental wellness are considered service under GST and covered under Chapter 9997. Know more.
  13. Karnataka High Court has ruled that residential premises turned into a hostel for students and working professionals won’t attract GST. Know more.
  14. GST on the supply of electricity is one of the prominent issues. Electricity is a form of moveable property, and hence can be supply of goods under GST.
  15. sales and marketing activities involve advertising a company's goods or services to increase sales. Get complete details about GST on sales and marketing
  16. Indian government has put in place special provisions that e-commerce sellers need to comply with under the Goods and Services Tax (GST)
  17. Interest on late payment of invoices is subject to GST levy. Know the rules, GST rate and calculations by reading this article.
  18. GST levy on the redevelopment of housing society buildings is a litigious and argumentative issue. Know more about this by reading the article.
  19. The GST Council notified the e-Commerce Operators (ECO) to pay GST on restaurant services instead of the supplier from 1st January 2022.
  20. Advocates, whether individual or firm must pay GST at 18%. This article discusses the applicability, exemptions and GST rate on legal services
  21. The government has completely exempted sanitary pads from GST by charging a 0% tax rate on the sale of sanitary pads. Know more about its taxation
  22. GST rates on solar power based devices and system are defined under the GST law. Know the taxability of solar power products under the GST law.
  23. GST assessment is continued in offline mode. It poses some challenges practically for businesses. The article explores these issues and resolutions
  24. ITC provisions are getting tough day by day. This article explores the current laws and expected changes restricting ITC claims within deadlines.
  25. This article discusses the reimbursement of expenses to a supplier and the applicability of GST on the same. Also, find out who is a pure agent under GST.
  26. YouTube income and blogging income are considered as receipts on the supply of services and come under the purview of the GST law. Know about taxability.
  27. Slump Sale means the transfer of a business as a going concern. The article explores the applicability of GST and treatment of business assets transferred.
  28. GST on ocean freight must be understood in different situations together with the case law
  29. This article analyses the impact of GST on the sale of land, sale of developed plots and the leasing of land, along with the availability of ITC.
  30. Renting of motor vehicles by non-body corporate to a body corporate falls under RCM. Here's a detailed guide on RCM on renting of motor vehicles under GST.
  31. Carbon credits play a vital role in environmental protection. This articles discusses the applicability of GST on carbon credits.
  32. Liquidated damages are levied in case of failure to perform as per a predefined contract. Here, we discuss the impact of GST on liquidated damages.
  33. GST on various types of labour contracts is applicable, just like other goods and services. Get GST rates and HSN /SAC Codes applicable with the exemptions
  34. Find out the rate of GST on air conditioners, HSN codes applicable, impact due to the implementation of GST, the value of supply and availability of ITC.
  35. GST on cars is to be analysed for each type such as hatchbacks, sedans and sports utility vehicle (SUV), that differs with GST rate. Know the impact.
  36. GST on mobile phones is levied at 18% rate. The introduction of GST removed cascading effect benefitting mobile phone buyers. Read to know the impact.
  37. Read the article to know the GST implications on Vaccines, GST rates on COVID Vaccine, GST on transportation and storage as well as Budget 2021 expectations
  38. The article explores the applicability of GST on the food and accommodation services provided by coaching centres in the light of Advance Rulings.
  39. Quarantine Centres provided shelter to those who were diagnosed with COVID-19. The applicability of GST on the activities of these centres is covered.
  40. MRP or Maximum Retail Price refers to the maximum price that can be charged for a product and labelled on the product. CBIC has prescribed GST rules for it.
  41. COVID-19 led to more than 50 days of lockdown. Certain scenarios will have GST implications as well such as ITC reversal, and use of credit notes.
  42. Demo Car used by Dealers for test drives and demonstration purpose also has some GST implications. Read our article to know more.
  43. GST on CSR activities may or may not be available as input tax credit claims for companies. CBIC must issue a clarification soon to avoid any confusion.
  44. Director's Remuneration may be subject to GST if certain conditions are satisfied. CBIC has clarified through CGST circular 140/2020 dated 10th June 2020.
  45. Contract employee and part-time workers may be subject to GST on some conditions. In such cases, the employer will pay GST on reverse charge basis.
  46. There is a confusion on the applicability of GST on notice pay recovery. Let's see the different point of views on the GST treatment on notice pay recovery.
  47. Commission paid to brokers and commission agents will be subject to GST on specific conditions and the applicability depends upon the definition of agent.
  48. CBIC issued a circular to clarify the levy of GST on the maintenance charges collected by the Residents' Welfare Associations and Housing Societies.
  49. GST lookback in 2019 shows a year of reforms and ClearTax contributing towards simplifying these reforms for taxpayers. So, here's a flashback in 2019
  50. Learn how to spot a fake GST invoice and verify the correctness of the GSTIN, as well as the accuracy of the GST rates charged on the invoice.
  51. GST on Lottery sales can be classified between the Government initiated & Private Players. Learn all the Latest Changes to Taxation of Lotteries.
  52. GST is applicable to all modes of advertising including the sale of space in print media. Read here to know more about the GST on advertisement.
  53. his method is commonly used as direct marketing strategy by FMCG Companies to market new products. Eg. Newly introduced cookies handed over to moviegoers.
  54. Know the list of services exempt under GST. Understand what it means that an item becomes exempt under GST. Also learn differences between Exemption, Nil-rated services and Non taxable.
  55. One of the largest and revenue-garnering industries in India is Media and Entertainment. This article gives a micro-view of how GST works here.
  56. Here is a comprehensive guide on Taxation of Educational Institutions, Private Coaching classes and Distance Education under GST. Know which all educational Services are exempt under GST. Read to know more!
  57. Transfer of Tenancy Rights for Tenancy premium is considered as supply it will be taxable under GST. Tax will be applicable even in cases where stamp duty and registration fees are paid.
  58. GST Council: The GST council is the key decision-making body that will take all important decisions regarding the GST. The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.
  59. Let us take a look at how the implementation of GST affected NGOs and charitable trusts.
  60. The treatment of GST differs between residential and commercial renting. Know the input tax credit implications as well through this article.
  61. Let us look at the impact of implementation of GST on shipping charges.
  62. Let us look at the impact of GST on gold and GST on gold jewellery and gold ornaments with advance rulings. Also, learn GST rates on various gold jewellery.
  63. Know about Goods and Service Tax in India. Learn about GST, Input Tax Credit & Transitional Provision through our PPTs and PDFs.
  64. There's a lot of confusion regarding the treatment of Goods Transport Agencies under GST. Read to find out whether GTA is liable to register and pay GST.
  65. Impact of GST on your finances will have a mixed effect. For many items, there is a reduction in taxes.
  66. Impact of GST on cab services is beneficial for passengers as it has reduced travelling costs. However, GST results in increase in the lease payments.
  67. Rate of GST on IT sector has increased to 18% but the IT industry will enjoy an increase in sales thanks to demand of GST software.
  68. Impact of GST on export of goods and services is going to be positive. Exports are zero-rated and availability of ITC are a boost for the exporters.
  69. How will the new tax policy affect the tourism and hospitality industry in India? Let our experts enlighten you about the same...
  70. GST is here! How is our economy and the businesses coping with this new tax policy? Let our experts tell you about the same.
  71. GST Council has confirmed that implementation will not be delayed. However, they have allowed GST return filing relaxed for 2 months
  72. There will be an increase in insurance premiums and banking charges due to impact of GST on insurance and banking sectors.
  73. GST Rates revised for 66 items after recommendations from states and industries. Read to find out how this will affect your home and business.
  74. The impact of GST rate on coal is going to be positive for the whole Indian economy. Reduction in the tax rate on coal would help other industries.
  75. Know the list of goods exempt under GST. Understand what it means that an item becomes exempt under GST. Also learn differences between Exemption, Nil-rated goods and Non taxable.
  76. Impact of GST rate on Domestic appliances and Electrical machinery as declared by the Government. Domestic appliances to get expensive under GST.
  77. Impact of GST Rate on Iron and Steel industry is expected to be beneficial in the long run. Steel industry to benefit from lower tax on inputs.
  78. GST impact on the tobacco industry is expected to be neutral after the declaration of the maximum GST compensation cess that could be charged.
  79. Planning your holidays in July? Read more on how GST will impact air fares in the country and whether or not it will be beneficial for you.
  80. Cement will attract 28% GST resulting in increased costs for the infrastructure sector. Is there a positive impact of GST on cement? Read our analysis here.
  81. The impact of GST rates on the entertainment industry will vary from state to state. Read more to understand how GST will affect this sector.
  82. GST rate on rail transport is 5% rate. Does it benefit your business? Find out how it affects your ticket prices and holiday plans.
  83. The impact of GST on the pharma industry and medicine will be neutral. Formulations would be charged at 12% under GST while the average rate is 9% under pre-GST laws.
  84. Impact of GST rate on furniture manufacturers is unfavorable for the steel or iron furniture manufacturers.Wooden furniture would be taxed at a rate of 12%.
  85. Due to GST Rates of fruits and vegetables, fresh fruits and vegetables have been exempted with further processed or frozen fruits and vegetables taxed @ 5%.
  86. The GST Council's fitment committee has announced the rates for most products. Here are the tax rates for products used by the textile manufacturers.
  87. The GST rates for 90% of the goods have been announced, but there is still some doubt regarding taxation for certain categories. Read our expert analysis.
  88. Read our research and analysis on the impact of GST on healthcare and pharma sector in India.
  89. Lok Sabha has passed the 4 GST bills with certain amendments. Click here for a list of the major GST amendments proposed in the bills.
  90. It is mandatory to pass on the benefit due to reduction in rate of tax or from input tax credit to the consumer as an anti-profiteering measure. Read More
  91. Under the current law, wholesalers and retailers escape the tax liability as there is no mechanism to trace it, but this will change under GST. Read more
  92. While all the businesses are now preparing to set up the infrastructure for GST implementation, Income Tax department is gearing up to surprise them all.
  93. Freelancers under GST providing taxable services will need to get registered (if exceeding the exemption limit) and pay tax on the services provided.
  94. The impact of GST on Textile Industry is expected to be positive in the long term. The contribution of textile industry to exports is expected to increase.
  95. GST law allows principal to send taxable goods, without payment of tax, to a job worker. There can be further movement of such goods from one job worker to another.
  96. GST Impact on FMCG sector is likely to be beneficial to both the industry and the end consumers. Read here to find out more.
  97. GST has defined works contract as a contract where transfer of property in goods is involved in the execution of such contract.
  98. GST impact on automobile industry is positive but threre is ambiguity in rates.GST would help in creating a better competitive market.
  99. The positives and negatives of the GST compliance processes on SMEs.
  100. An analysis of how the GST will affect ecommerce companies and operators.
  101. An analysis of how GST will impact the logistics industry.
  102. An analysis of how GST will impact the food services and restaurant business.
  103. GST will streamline the real estate sector and provide a reduction in cost for the developer. GST is expected to reduce the cost of Residential houses.
  104. Online marketplace operators have already completed the impact analysis of GST on their operations. Marketplace sellers are still unaware of these rules. Need of the hour is to be aware of applicable GST provisions.
  105. Worried about Transitional Provision as a Job Worker under Goods and Services Tax? Find out here to be GST Ready
  106. Having doubts on Import Provisions under Goods and Services Tax? Read hear to understand how GST will Impact Imports in India
  107. A special economic zone (SEZ) is a dedicated zone wherein businesses enjoy simpler tax and legal compliance. Here we are drawing implication of GST on Units Operating in Special Economic Zones (SEZ) in India
  108. Continuing our discussion further, we are now analyzing the implications, that GST has brought along on units operating in SEZs.
  109. The impact of GST on Banks and NBFCs will be such that operations, transactions, accounting and compliance will all together be needed to reconsidered.
  110. Impact on Stock transfer under GST, Related Valuation Rules, meaning of Supply, Free Supplies
  111. Startups especially will enjoy the benefits of GST such as much simpler taxation, higher threshold. Read on for the impact of gst on startups
  112. Impact of gst on agricultural sector would be benefical in the long run. GST would help the farmers to get a better price for their product.
  113. Most of the business activities redefined under GST.Every business needs to assess its policies, strategy, process in order to be competitive in the post GST market.
  114. The abolition of Research and Development Cess under GST would lower down the cost related to taxes, compliance and import of technology.