GST Drawbacks | GST
GST drawbacks are the disadvantages of the new GST regime of indirect taxation against the present regime of indirect taxation. The GST drawbacks includes
- Small traders may not have access to internet or computers and may be left out.
- GSTN or IT network for GST, can have privacy and security related issue
- GSTN or IT network for GST, can be a single point of failure affecting every one across India, if any failure occurs
- Local dealers have to pay CGST in addition to SGST (earlier they had to pay just VAT).
- There shall be no differentiation between “goods & services” under GST model, services supply within the state would attract SGST at each stage in the supply chain ,but in the mean-time assesse have to pay CGST also.
- Introduction of GST model could affect negatively (than positively) to few Industries/sectors.
- Under the GST Model , the state should face heavy losses in terms of tax collection but they also get compensated on the other hand by the states. Infact some states are of the view that there should not be any time –frame for compensation scheme.
