How To Revise Invoice In GST- Aster billig

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In earlier articles, we’ve covered various aspects of Goods And Services Tax, how to create a GST invoice and finally how to file GST Returns.

Now, once you file the returns, it becomes little tricky to make changes to the transactions of that particular month – specially Invoices.

But we are humans and changes are bound to happen. So, in this article, we are going to cover how to revise invoice under GST regime. Learn about supplementary invoices and how to use them.

GST has fundamentally changed lot of processes around taxation. It has a focus to have a free flow of input tax credit to the recipient, with monthly reporting of each and every invoice issued for a transaction. The situation is such that any inadvertent omission of an invoice from the monthly return shall lead to truncation of credit.

Hence, invoices are a critical part of the GST ecosystem and cover a number of important aspects like date, HSN/SAC Codes, IGST, CGST, SGST amounts, the taxable value of the goods or services, etc. All these data have to be fed into the returns on a monthly basis to determine the amount of tax payable or credit to be availed.

How to revise a tax invoice in GST?

There may be a situation where an invoice has been wrongly issued, or there are certain changes that are required in an already issued invoice. Such situations call for a rectification of invoices. All such rectification has to be reported accordingly in the monthly returns.

Revision of tax invoices can take place in a number of ways. There can be a downward or an upward revision in prices of goods or services being supplied, or there can be a change the in the rate of tax of GST or many other cases.

These cases render a change in the issued invoice. An upward revision can be catered to with a supplementary invoice. Similarly, a downward revision can be catered to using a credit note to that effect. In some cases, there can be a complete revision in the invoice; hence, a “revised” invoice has to be issued.

However, revised invoices have not been defined separately in the GST law as of now. Currently, all registered taxable person have been granted a provisional GSTN ID Number. After completion of requisite formalities, all such persons shall be provided a formal registration number under GST.

All invoices raised between the date from which GST is applicable and the date on which they get the formal GST ID number, such taxable registered person shall be required to issue a “revised” invoice. This invoice shall be in adherence to the terms of GST and has to be issued within 1 month from the receipt of original registration certificate.

It is obvious from the above that a registered taxable person cannot issue a revised invoice after receipt of registration certificate.

Supplementary invoices and its uses

A supplementary invoice makes good all deficiencies related to an original tax invoice under GST. There can be some situations where taxable value of the goods or services has been undermined in the original tax invoice, resulting in lesser amount of tax being charged or other such deficiencies.

In these cases, the supplier can issue a supplementary invoice to accommodate such incremental changes. It also includes debit and credit notes. Hence, any upward revision or downward revision can be taken care of in a supplementary invoice.

Apart from taking care of such changes, there are a certain number of particulars to be mandatorily mentioned in the invoice. There is no pre-defined format mandated by the GST law, but these pointers must be a part of the same in the paper or digital document. The particulars are as follows:

• Name and address of the supplier
• GSTIN of the supplier
• Nature of invoice, i.e. “Debit Note,” “Credit Note,” “Revised Invoice” or “Supplementary Invoice.” It has to be mentioned in bold to display the nature of the invoice.
• An alpha-numeric serial number for the invoice, specific to an accounting year
• The invoice date
• Name and address of the recipient
• GSTIN of the recipient
• Where a recipient is an unregistered person, then name and address of place of delivery, along with its respective State and code, of such person has to be mentioned
• The original invoice serial number against which the supplementary invoice is being issued
• The differential amount of tax, taxable value of the goods or services or rate of tax
• Signature of authorized person in case of physical document, or digital signature in case of electronic invoice.

With the help of this supplementary invoice, it can only be possible for the recipient to claim additional input tax credit.

Adjusting using Credit Note

According to Model GST law, section 2(35) read with section 24(1), a taxable person can issue a credit note when a tax invoice is issued for supplying goods and services, and the tax charged on that invoice exceeds the tax payable on such supply. A credit note should contain the prescribed particulars.

A credit note has to be issued:

1. If a taxable person who had issued a tax invoice for receiving goods and services.
2. When tax invoice charges a value more than tax payable
3. With prescribed particulars.

Hence, credit note acts as an accounting adjustment which settles the exact amounts of value and tax.

Also read about Credit Notes & Debit Notes.

Difference between revised and supplementary invoice

The basic difference is inherent in the absolute meaning of the documents. The revised invoice can only be issued with respect to any invoice issued by the supplier, whereas in case of supplementary invoice, it can only be issued to make good any deficiency in an already issued original tax invoice.

A registered taxable person can only issue revised invoices to a registered taxable person. However, a registered taxable person can issue a supplementary invoice to a registered or unregistered person.

Revised invoice is restricted to a period between registration date and date of receipt of registration certificate. The supplementary invoice can be issued based on an invoice on as-is basis.

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The Government of India intends to introduce the Goods and Services Tax (GST) in the country at the earliest. GST seeks to subsume many indirect taxes at the Central and State level. The proposed dual GST envisages taxation of the same taxable event, i.e., the supply of goods and services, simultaneously by both the Centre and the States.

The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, has been introduced in the Parliament for facilitating the introduction of GST in the country. Simultaneously, committees comprising of officers from the Central Government, as well as the State Governments, have been constituted for the drafting of Model CGST, SGST and IGST laws, and GST business processes of registration, refunds, returns and payments.

The draft Model CGST, SGST and IGST laws, shall be put up for inviting comments of stakeholders in due course. Presently, the draft business processes on GST returns, GST registration, GST refunds and GST payments are being published.

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What is goods return?

A goods return or purchase return is a transaction where the buyer of inventory or other items sends these goods back to the seller.

It may be due to various reasons such as poor quality, defective items or extra items being ordered.

Goods Return in E-commerce Sales

In e-commerce sales, goods return is a very common feature.

Buyers often return goods if they don’t fit properly or the description does not match the product or if they have changed their minds. In fact, buyers tend to buy online because the easy return & refund policy is attractive. Most sellers selling online provide a return policy.

That being said, there are things you can do to reduce the number of returns. Click here to find out how to reduce the number of sales returns.

Goods Return under GST

Goods returned by registered buyer

If goods are returned by a registered recipient, then the registered seller will issue a credit note to the buyer.

The seller must declare the credit note in the GSTR-1 of the month in which it was issued.

For example,

Ajay sells 100 pens of Rs. 10 each to Vijay on 28th Sep. Vijay finds 10 pens are defective and returns them on 3rd Oct. Ajay will issue a credit note for Rs. 100 (10 x Rs.10) on 3rd Oct. He will show the credit note in his GSTR-1 of Oct.

The credit note will automatically flow into Vijay’s (buyer) GSTR-2 as a debit note.

The following image shows how the sales returns from registered buyers will be reflected in GSTR-1. For more details, please read our detailed guide on GSTR-1.

When should the credit note be issued?

The credit note must be issued and declared within the specified time-

• By September of the next financial year
• OR
• Date of furnishing of the relevant annual return,

-whichever is earlier

So in our above example, Ajay must declare his credit note of 3rd Oct 2017 by Sep 2018. If he files his annual return of 2017-18 on 31st July 2018 then the last day to declare the credit note is 31st July 2018.

Goods returned by unregistered buyers

For returns by unregistered buyers, the seller will show a consolidated list of sales returns and other changes in sales details of previous months in his GSTR-1.

While breakup on an invoice level is not needed, the seller must give the breakup of intra-state & inter-state sales returns. For both, sales returns through e-commerce must be shown separately.

The following image shows how the sales returns from registered buyers will be reflected in GSTR-1. For more details, please read our detailed guide on GSTR-1.

 

E-commerce Sellers

In e-commerce, the e-commerce operator collects the amount from the buyers and pays it to the seller after deducting the marketplace fees (Sellers generally incorporate these fees while pricing their products). Click here to find out more about the marketplace fees.

Let us understand this through an example.

Mr. Vinay Dua is a trader who sells his ready-made clothes online on Amazon India. He receives an order for Rs 10,000 (including GST). Amazon charges a commission of Rs 200. Clothes worth Rs. 2,500 were returned by the buyer.

Amazon will collect the money from the buyer. Finally, Amazon pay Rs. 10,000-2,500-200= Rs.7,300 to Mr. Vinay.

Tax Collected at Source

Note: Provisions of TCS will start to apply from 1st April 2018.

Once the provisions of TCS apply, Amazon will deduct 2% TCS on the net amount if the payments exceed 2.5 lakhs.  Amazon would thus be deducting tax for Rs 200 (2% of Rs. 10,000), assuming his total payments exceed 2.5 lakhs.

If Mr. Vinay sells to unregistered buyers, he will show the sales returns in GSTR-2 in a consolidated form as above. If he sells to another registered dealer, he will issue a credit note and show each credit note separately.

Adjustment of the Tax Liability on Goods Return

The tax liability will be reduced for the seller and the amount will be reversed from ITC of the buyer’s GSTR-2.

If the incidence of tax has been passed to another person (i.e., for any reason ITC cannot be reversed) then there will be no reduction in tax liability.

For unregistered buyers, the entire amount must be refunded to the buyer returning the items. If the amount is not refunded for some reason even though goods are returned, then the tax liability will not be reduced.

Thus, GST follows the general law of unjust enrichment that no one will be allowed to profit at another’s expense.

Transitional Provisions

These provisions apply on goods sold before GST but returned after GST. When it was sold Excise & VAT was applicable. Now on return GST is applicable.

Let us consider each situation one by one through a common example

• Seller:                         Mr. Ajay
• Buyer:                         Mr. Vijay
• Goods sold on            25th June 2017
• Net amount:              Rs.10,000
• Current VAT rate       14.5%
• GST Rate:                   18%
• GST implemented on:  01/07/2017
• Goods returned on: 31st August 2017

Taxable Goods

Taxable goods returned by registered person

Goods (on which taxes were paid under the previous regime) returned by a registered buyer will be treated as ‘Deemed Supply’. GST has to be paid on this by the person returning the goods.

Why must the original buyer pay GST?

This is because when the goods were sold VAT was collected. The buyer claimed input tax credit on VAT paid. Either this VAT credit was adjusted while discharging output tax liability. Or the buyer has carried forward the VAT credit under GST in form TRAN-1. So, allowing reversal of tax liability in GST for the seller or no effect for the buyer will mean unjust enrichment.

The tax paid by the buyer will be allowed as input tax credit to the original seller of such goods thus eliminating loss.

Example 1: Registered buyer

Mr. Vijay has to pay 18% on the goods returned. He has already claimed the earlier 14.5% VAT paid as ITC in the previous tax regime. Mr. Ajay claims the GST of 18% as ITC.

Taxable goods returned by Unregistered Taxable Person

When the unregistered buyer returns the goods then the seller of such goods will be allowed refund of tax paid originally if ALL the following conditions are satisfied:

• The goods were sold maximum 6 months before 1st July 2017 AND
• They were returned within 6 months from 1st July 2017 AND
• The tax officer can identify the goods

Example 2: Unregistered buyer

Vijay is an unregistered buyer. Then Mr. Ajay is eligible for a VAT refund of 14.5%.

Example 3: Return after 6 months

The goods are returned by Vijay on 2nd Feb 2018.

As the goods are returned after 6 months from 1st July 2017, Ajay is not eligible for a VAT refund.

Exempted Goods

Exempted goods under those which attract 0% tax. Most of the regular food items like rice, cereals are exempted under GST & also under the previous regime. The following provisions mainly apply in situations if the items were exempted under the previous regime but now taxable under GST (e.g. non-commercial LPG for homes).  

Exempted goods returned by a registered buyer or an unregistered buyer

If goods which are exempt under the previous regime are returned after GST by a registered or unregistered buyer, no tax is payable by the buyer

Why?

The goods were exempted under the previous regime so there was no concept of ITC or carrying forward the same under GST. So, no tax is payable since there is no unjust enrichment.

Example 4: Registered buyer

Both Ajay & Vijay are registered and the goods were exempted in the previous regime. No tax is levied on goods returned.

Example 5: Unregistered Buyer

Vijay is unregistered and the goods returned were exempted in the previous regime.

There is no tax implication.

What should a business do?

Businesses should be careful and take precautions when accepting or making a return of goods. Returns are vital to the e-commerce business and as sellers you must make sure you record all your sales returns correctly. Sales returns from registered buyers and unregistered buyers must be recorded separately as they will be reported separately in your GSTR-1.

How can ClearTax help you?

ClearTax GST Software has partnered with Amazon keeping in mind the specific treatment of sales returns of e-commerce. Our user-friendly easy-to-use software will automatically pull the sales return information from your sales data and segregate them correctly. Be assured of easy, timely, error-free filing with ClearTax GST Software.

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Input Tax Credit

Provisions have been made for the smooth transition of Input Tax Credit available under VAT, Excise Duty or Service Tax to GST.  A registered dealer opting for composition scheme will not be eligible to carry forward ITC available in the previous regime.

Here are some of the cases where ITC transition provisions will be applicable:

1. Closing balance of credit on Inputs:

The closing balance of ITC as per the last return filed before GST can be taken as credit in the GST regime.

The credit will be available only if the returns for the last 6-months i.e. from January 2017 to June 2017 were filed in the previous regime (i.e. VAT, Excise and Service Tax returns had been filed).

Form TRAN 1 has to be filed by 27th December 2017 to carry forward the Input Tax Credit. Also, TRAN 1 can be rectified only once.

2. Credit on Capital Goods:

Before GST, only a part of input tax paid on Capital Goods could be taken as credit.

For example, if ITC on a Capital Good purchased in the year 2016-17 is Rs 10,000,

50% i.e. Rs 5,000 can be claimed as ITC in the same year and balance Rs 5000 can be claimed in the next year.

In such cases, there could be some amount of un-utilized credit available on the capital goods. This credit can be carried forwarded to GST by entering the details in Form TRAN 1.

3. Credit on Stock:

A manufacturer or a service provider who has goods lying in the closing stock on which duty has been paid can also take the credit for the same. The dealer has to declare the stock of such goods on the GST Portal.

The dealer should have the invoices for claiming this credit. Also, the invoices should be less than 1 year old.

What if you don’t have invoices?

Manufacturers or service providers who do not have an invoice evidencing payment of duty, cannot claim the credit under the GST regime.

Only traders can claim credit in case invoice is unavailable, subject to the following conditions:

• The stock should be identified separately
• The credit can be taken by the trader only if the benefit of the same is passed on to the final consumer

How will credit be taken in case of no invoice?

Rate of GST on Goods	Intra-state  Credit to CGST	Inter-state Credit to IGST
18 % or more	60%	30%
Less than 18%	40%	20%

4. Registered persons who were not registered under previous law

Every person who is

• A registered dealer and was unregistered under previous law
• Who was engaged in the manufacture of exempted goods or provision of exempted services
• Who was providing works contract service and was availing abatement
• A first stage dealer or a second stage dealer
• A registered importer

can also enjoy ITC of inputs in stock held on 1st July.

The following conditions must be fulfilled –

• Inputs or goods are used for making taxable supplies
• Such benefit is passed on by way of reduced prices to the recipient
• Taxable person is eligible for input tax credit on such inputs
• The person is in possession of invoices evidencing payment of duty under the earlier the law
• The invoices are not older than 12 months
• The supplier of services is not eligible for any abatement under GST

5. ITC on Goods Sent Before 1st July

Input tax credit can be claimed by the manufacturer/dealer for those goods received after the appointed day, the tax on which has already been paid under previous law. Above credits would only be allowed if the invoice/tax paying document is recorded in the accounts of such person within 1stAugust 2017. A thirty-day extension may be granted by the competent authority on grounds of sufficient cause for delay.

Refunds and Arrears

Any claims/appeals pending for the refund on the due amount of CENVAT credit, tax or interest paid before 1st July shall be disposed of according to the previous laws.  

Any amount found to be payable under previous law will be treated as arrears of GST and be recovered according to GST provisions.

Other Cases

1. Job Work

No tax shall be payable on Inputs, semi-finished goods removed for job work for carrying certain processes and returned on or after 1st July

Conditions when there is no tax payable:

• Goods are returned to the factory within 6 months from 1st July (extendable for a maximum period of 2 months)
• Goods held by job worker Is declared in Form TRANS-1
• Supply of semi-finished goods is done only on payment of tax in India or the goods are exported out of India within 6 months from 1st July (extendable by not more than 2 months)

Taxes are not applicable if finished goods were removed before 1st July for carrying certain processes and are returned within 6 months from 1st July

Input tax credit will be recovered if the goods are not returned within 6 months

2. Credit Distribution by Input Service Distributor

Transition provisions will apply in cases where the service was received prior to 1st July and the invoices received on or after 1st July.

ISD will be eligible to distribute input tax credit under GST.

3. Composition Dealer

When a registered dealer who was paying tax under composition scheme previously but is a normal taxpayer under GST can claim credit of inputs available as on 1st July by satisfying certain conditions –

•         The Input is used for taxable supply
•         Registered Person is eligible for ITC under GST
•         Invoice or other duty payment documents are available
•         Such invoices are not more than twelve months old

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GST Implementation in India

India’s biggest indirect tax reform in the form of Goods and Services Tax (GST) has completed 1 year. A comprehensive dual GST was introduced in India from 1 July 2017.

The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Budget for 2006-07. The talks of ushering in GST took concrete shape with the introduction of Constitution (122nd Amendment) Bill, 2014. The Bill was passed by the Parliament on 8 August 2016. This was followed by the ratification of the Bill by more than 15 states. On 12 April 2017, the Central Government enacted four GST bills:

• Central GST (CGST) Bill
• Integrated GST (IGST) Bill
• Union Territory GST (UTGST) Bill
• The GST (Compensation to States) Bill

In a short span of time, all the states approved their State GST (SGST) laws. Union territories with legislatures, i.e., Delhi and Puducherry, have adopted the SGST Act and the other 5 union territories without legislatures have adopted the UTGST Act.

The GST Council, a recommendatory body consisting of representatives of Central as well as state governments, has met on several occasions and taken important decisions relating to tax rate structure, exemptions, rules, composition scheme etc. Over the period, the Council has recommended a reduction in the tax rates of various goods and services. It is also considering the various issues faced by trade and industry and endeavoring to simplify the new tax regime and ease compliance.

On the compliance front, all registered persons have to file monthly returns in Form GSTR-3B (containing a summary of outward and inward supplies) by the 20th of the succeeding month. Additionally, an invoice-wise return of outward supplies needs to be submitted in Form GSTR-1 by the 10th of the succeeding month. Taxpayers with turnover upto INR 1.5 crores can file Form GSTR-1 on the quarterly basis. The Government has suspended the requirement of filing Form GSTR-2 (containing details of inward supplies) and GSTR-3 (a consolidated statement of inward and outward supplies).

The GST Council has approved a simplified GST return format wherein the taxpayers will be required to file only one monthly return. Input tax credit will be available based on invoice details of outward supplies uploaded by the supplier. Taxpayers having turnover below INR 5 crores will have an option to file the return on the quarterly basis.

Under GST, there is a provision for the person in charge of a conveyance to carry electronic waybill (e-way bill) if the consignment value exceeds INR50,000. E-way bill can be generated through various modes such as web (online), Android app, SMS using Bulk Upload Tool and API-based site-to-site integration. The e-way bill system has become effective for inter-state as well as an intra-state movement of goods.

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Finance ministry notifies annual return forms under GST for 2017-18

The finance ministry has notified annual tax return forms for businesses registered under the GST, in which details of sales, purchases and input tax credit (ITC) benefits accrued to them during 2017-18 fiscal have to be provided in a consolidated manner.

The ministry has notified annual return form for normal taxpayers (GSTR-9) and for composition taxpayers (GSTR-9A). The last date for filing the annual return forms is December 31.

The Goods and Services Tax (GST), which subsumed 17 different indirect taxes, was rolled out on July 1, 2017.

The annual return form for normal taxpayers has been divided into 6 parts with 19 tables which includes detailed information related to outward supplies, inward supplies, ITC availed, ITC reversed, ineligible ITC, particulars of demand and refund, HSN summary of outward supplies and HSN summary of inward supplies of the transactions declared in returns filed during the financial year ending March 2018.

Also information with regard to transactions related to the financial year ending March 31, 2018 declared in return of April to September are to be declared in the annual return.

"Today government has accepted the long pending demand of industry and has notified annual return form for normal taxpayers(GSTR 9) an annual return form for composition taxpayers(GSTR 9A) in which detailed information has to be provided by businesses," AMRG & Associates Partner Rajat Mohan said.

Also information with regard to transactions related to the financial year ending March 31, 2018 declared in return of April to September are to be declared in the annual return, he added.

"This Annual return format refers to the computation of reconciliation of Tax credit claimed in GSTR 3B against credit available in GSTR 2A and IGST paid on import of supplies with the aim that Tax credit not availed till filing of return for September 2018 would lapse forever," Mohan said.

While Part I of the form deals with basic information of the business, the details of all the supplies declared by the taxpayer in the returns filed during the financial year have to be filled in Part II of the return form in a consolidated manner.

Part III consists of the details of all input tax credit availed and reversed in the financial year for which the annual return is filed.

Part IV is the actual tax paid during the financial year.

Part V consists of particulars of transactions for the previous financial year but declared in the returns of April to September of current FY or date of filing of Annual Return for previous financial year (for example in the annual return for the FY 2017-18, the transactions declared in April to September 2018 for the FY 2017-18 shall be declared), whichever is earlier.

Benefits and Challenges to GST and impacts of gst

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Benefits and Challenges to GST

Benefits

• Removal of multiple taxation.
• Removal of cascading tax effect, i.e. tax on tax.
• Increase in the production of goods and services
• Increase in the demand and supply of goods and services.
• Due to lower burden of taxes, there is a reduction in overall costs.
• Burden has been decreased on the final tax payer, i.e. Consumer at the end.
• Control over the circulation of black money as the system normally followed by traders and shopkeepers will be put to a mandatory check.
  Revenue of the government increased by extended tax base.

Challenges

• Impact on pricing of goods and services due to subsumed taxes.
• To keep a check on the rates of GST. If the rates of GST are over 15%, then the goods would be costlier.
• There are still a few states in India which lack IT Infrastructure.
• A separate law must be drafted.
• Transfer of goods from one state to other all over the country. Continuation of specific exemptions on central GST and state GST.
• Constitutional amendments to enable GST to central and state governments.
• Constitutional amendments to enable levy of GST on imports.

Impact of GST on Different Sectors

1. Consumer Goods & Services
   The GST rates for the FMCG industry is set at 18-20%.  While most are happy with the introduction of GST, the ones who are heavily affected are opposed.
2. Transportation
   The rates for cabs has been lowered to 5% and for air travel also.  So, this is a welcome move for those in this sector.
3. E-Commerce
   Post GST, e-commerce operators collect 1% of the net value of the taxable supplies, which is called Tax Collected at Source (TCS).
4. Entertainment & Hospitality Sector
   This sector was affected as this sector falls in the 28% category.  Movie tickets, hotel rates will now be costlier.
5. Financial Products and Services
   The, financial services such as funds and insurances, (Non-Banking Financial Company) are most impacted.
6. Start-Ups
   GST has a positive influence towards start-ups. It had got both advantages and disadvantages for start-ups. However, as a start-up, already facing the stress of a new business, the question of how the new GST will impact your business, must be difficult for you.
7. Inflation and Economic Activity
   GST is a Inflationary measure. However, the rise in the tax rate on services to 18% is expected to raise inflation.
8. Stock Transfer
   Post the introduction of GST, tax is levied on branch transfers and input tax can be claimed later.
9. Export of Goods & Services
   At all stages of the supply chain there is no tax, post GST. Moreover, the availability of input credits is welcomed.
10. Gold and Gold Jewellery Prices
    Post GST the tax rate was set to 18% initially then brought down to 5% tax rate
11. Rent
    Since the implementation of GST the exemption limit for renting out commercial property is Rs. 20 lakhs and there is not GST on house rent.
12. SEZ
    Under GST regime, SEZ’s have benefitted from a zero-tax rate.
13. Affordable Housing
    Purchase of houses is non-taxable, however under construction house will carry a GST tax rate. The GST rates for homes purchased under CLSS, EWS, LIG, MIG1/11 will be 8%, after deducting cost of land. However, those doesn’t qualify CLSS, etc, will have to pay 12% GST on constructed houses.
14. Real Estate Sector
    This sector has mostly benefitted from the introduction of GST, as much of this sector is becoming more transparent.
15. Logistics
    The rate pre-GST was above 26% and post the implementation of GST there was reduction to 18-21%, which was good news for the sector.
16. Manufacturing Industry
    GST, demands businesses to set-up mechanism for meeting the requirements of GST. Therefore, once the companies adapt the requirements, the compliance costs will go down drastically.
17. Automobile Industry
    GST absorbed indirect tax regime, which attracted several duties and taxes on the sale of vehicles and spares and accessories.
18. Chemical Industry
    Implementation of GST is believed to be positive to the chemical industry, especially in the long term.
19. Tobacco Industry
    The new GST rates are less than the combined taxes during pre-GST regime.
20. Stainless Steel Industry
    GST had made a very good impact on steel industry. After issuing new tax rates, it has become more favourable to steel industry. The GST rate for primary steel industries is imposed at 18%, which is helpful for them to grow.
21. Textile Industry
    Despite some changes under the GST regime, the textile sector benefitted with the implementation of the regime.
22. Coal Sector
    After the GST implementation, the coal transportation rates have done down to 5% through trains, and thus the logistics costs has been decreased.
23. Power Sector
    Overall impact of GST on power sector is positive. Domestic coal, is in the 5% tax slab. The impact of GST will be positive for the electrical and the lighting sectors as the rate is now 18%.
24. Exports
    In the pre-GST tax system, import of the goods carried several import duties, however, after GST, IGST has replaced the indirect taxes that was earlier imposed on import of goods and services.
25. Domestic appliances and Electrical Machinery
    There is not a huge impact in this industry as the new GST rates around 25%, which is similar to the rates pre-GST.
26. Job works
    Special provisions exist for removal of goods for job-work and receiving back goods after processing from the job-worker carry no GST. The benefit of these provisions is extended both to the principal and the job-worker.
27. Various segments of Indian Railways
    The impact of GST in this sector is very minimal as the rate is kept at the lowest tax rate of 5% to ensure passengers benefit the most.
28. Hospitality Industry
    This is another industry that has benefited as the previous tax regime levied up to 27% tax. Post GST, the tax rates have been reduced.
29. Aviation Sector
    The industry has mixed feelings about the introduction of GST, especially the GST rates for airline fuel.
30. Pharmaceutical Industry
    This industry will see an increase in costs after GST implementation as the cost of medicines will rise by 2.3% in the 12% bracket and medicines with 5% will see no increase in MRP.
31. Cement Industry
    GST will not affect this industry drastically, the tax rates imposed will get absorbed in the cost of cement production.
32. Digital Advertising Industry
    This industry which is fast growing, is a cheaper method for companies as GST will have less effect in this sector, as compared to traditional marketing.
33. Sweet makers
    They are trying to figure out if they need to pay 28% tax on it as many of our chocolate variations have more than 5% cocoa content. Badam milk, basundi and rasmalai are also a concern as we aren’t sure if they are sweets (5% tax) or beverages (12% tax).
34. Handicraft Sector
    One of the largest sector of the country, which is most affected by GST. Therefore, GST is not welcomed by the artisans.
35. Alcohol Industry
    There is no GST on alcohol, instead there is an increase in the price of alcohol. Price of a beer is going to raise by 15% and wine and other hard drinks will be increasing by 4%.

Impact of GST on a Short term

Before the implementation of GST, consumers paid more for goods and services, however, everyday consumables saw no major change in rates. The main drawback is on the small and medium enterprises, who will incur costs in trying to become GST compliant, which may result in higher prices of goods.