The implementation of GST has been subject to quite some deliberation and discussion over the years. However, following its application, one cannot deny its benefits and how it has simplified the rather complicated indirect tax structure of India.
Among its advantages, GST has consolidated the indirect tax structure, which has helped businesses to avoid the cascading effect of taxation. It has paved the way for organisations to save significantly on their tax payments. Even though every business has received its benefits, individuals can focus on a few selected sectors that will help them maximise their investments to make the most of GST return.
Sectors to maximise the benefits of GST return from
Here are some sectors that can aid investors to avail the maximum benefits of GST implementation:
- Logistics and e-commerce
Talking about the advantages of GST, it has successfully subsumed the state-wise taxes that hampered the free movement of goods across the country. Previously, companies had to file for state-wise taxes, which increased the hassle of paperwork and waste valuable time.
However, a centralised taxation structure of GST has eliminated this issue. Companies can now pay tax once and move their goods freely throughout the country. This will especially help the logistics and e-commerce sector, as they now avoid building warehouses and hubs in each state and move goods faster, without waiting at the state border for clearance.
State VAT, excise, sales tax, etc., are some of the indirect taxes that the automobile manufacturers and dealers had to endure in their business operations. The implementation of GST, however, has changed it completely.
Dealers and manufacturers are only liable to pay Goods and Services Tax on their products and operations and also claim tax benefit of their acquisitions. Resultantly, they can now buy various components of a car at a lower price. As a result, the tax levied on the consumer end has also reduced, which has boosted their sales.
The effects of GST has been mixed in the FMCG sector. This new regime may have readjusted the taxation and reduced overall distribution cost, but the tax rates have moved higher in some cases. In some other, it has come down significantly. Thus, GST affects the FMCG sector dynamically.
Nevertheless, FMCG remains an attractive proposition for investors in this current tax regime as it holds a huge market in India.
- Consumer durables
GST return on consumer durables varies depending on the product one opts for. Therefore, individuals can refer to the latest developments regarding this to learn more about it and then decide. Nonetheless, the demand for such products is yet to be stagnant, and a developing economy like India will always hold potential for investments in this segment.
- Real estate
Real estate may have suffered in recent years, but Government initiatives are slowly reviving this sector. Implementation of GST has also benefitted this sector, as state-wise taxes are not applicable anymore. Even though municipality taxes are still applicable on properties, a flat GST rate has helped builders avoid the hassle of paying various taxes.
Considering the growth of this sector in recent times, investing here holds greater promise.
Keeping the GST advantage in mind, you can invest in any of the above-mentioned sectors with monetary help from a business loan. However, do not forget to complete the GST login and get GSTIN to attach with the loan application as business proof.
You can also always skip this application process with the help of pre-approved offers from financiers like Bajaj Finserv. Available on a host of financial products, like business loans, personal loans, etc., these offers save time on a loan application. Individuals can check their pre-approved offer online by submitting essential contact details.
GST return is not a uniform concept, and it alters from one sector to another. Therefore, individuals who are drawing their investment plans keeping GST benefit in mind can consider the above-mentioned options and study the recent impact of GST in detail before moving ahead.
Following years of deliberation and discussions, the implementation of GST brought forth its advantages, transforming the indirect tax system in India. At the same time, it has also altered the wa y companies operate in this country and ease their operational hurdles.
Even though every segment has benefited from these taxation changes, GST returns have impacted a few of them particularly and made them a great choice for investment.
Real estate is another sector that has benefitted from all types of GST implementation. Following its current resurgence after a tough period, this sector can help individuals maximize their GST benefits.
Complete the GST login and get the GSTIN to begin your venture in any of the aforementioned sectors. If you need financial support, then avail of a business loan from leading lenders. They will provide you fund to expand your business easily.