What are the benefits of GST Bill in India?

On Wednesday (3^rd Aug, 2016), the GST Bill presented. This bill is very important for common people because if this bill will be pass people will get more and more benefits. Peoples have more hopes from this GST bill. Now days we pay taxes for state as well as centre level. So this bill is very important for everyone.

For this bill Government should have 123 seats. Parliament have total near 244 seats, in which BJP have 67 seats and congress have 60 seats. If congress ready with BJP then this bill will be pass without any arguments. Because there total will are 127 and they need 120. So we think this will be passing, if congress will agree with BJP.

Benefits from GST Bill

There so many benefits from this bill like:-

No Service Tax on Transactions: - Now VAT and Service Tax are paid separately but with GST only one tax will be paid while purchasing home or on other transactions.

Less Cost on Dining in Restaurants: - Right now VAT is charged as per state defined but with GST only one tax will be paid.

Cheap Consumer Durable: Consumer products like air conditioner, microwave oven, fridge, washing machine will be cheap to buy as excise duty will be waived off.

Cheap Logistics Cost: - Expenses of logistic companies will be down by almost 20%. Further to the benefit of both companies and common people.

Industry: - Benefit of various industries as 18 taxes are not to be filed separately hence making tax filing simpler.

While there are benefits of GST bill there are some of the products whose cost will go up. Some of them are:-

Tea-Coffee/Packaged Food: - cost of processed food products will increase by 12%. As currently there is no duty imposed on sale of these products.

Services: - Mobile bill, credit card services or any other services will be costlier as currently while 15% is paid for services, it will increase up to 18% after GST.

Discount: - Right now tax is paid out on this discounted price on product but after GST bill the taxable amount will be calculated on MRP of a product.

Gems & Jewellery: - Right now only 3 % duty is levied on sale of gems and jewellery products but after GST bill a tax of 12% will get imposed.

Ready-made Garments: - Right now only 4-5% Vat is levied on sale of garments but after GST bill a tax of 12% will get imposed.

GST means Goods and Services Tax, This will used in place of indirect tax in 20 state and centre level. After GST bill pass Excise Duty, Services Tax, Additional Custom Duty, Special Additional Duty of Custom, VAT/Sale Tax, Central Sales Tax, Entertainment Tax, Entry Tax, Luxury Tax will finish/close. And after this only 3 types of tax will be charged i.e. Central GST, State GST, Integrate GST(IGST for If any business done between two states then it IGST will be applicable and then centre government distribute equally between both of the state government.). Now every common man if purchase a product from any state x amount then the same product will be sale by x amount by the companies and people can purchase this product by x amount. One product will not be sale by two different amounts by the state government. After GST this will be sale by same amount.

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GST Bill and its effect on Indian Stock Market

People think about GST (Goods and Services Tax), as the game changer for Indian Economy. And it will directly effect on stock market and overall economy of the nation. In market there are few sectors on which GST may affect negatively as its unknown and undecided tax rate. Also, stocks from these industries which currently enjoy the benefit of lower tax rate than speculated higher tax rate from the passing of GST bill will be negatively impacted.

GST will also affect both ways, positively on some sectors and, negative on few others. Whatever the passing may be, In India, all stock broker companies and investors are anticipating for the opportune moment in markets as provided by GST bill.

For Bank Sector

According to the market experts where bank take 15% tax on few services then it will increase by 18%-20%. Whereas it will gives positive effect on bank sector because GST is good for economy. For this loan demand will increase and this will be good for bank sector.

For Metal Sector

GST will not give any effect on Metal Sector. Presently tax rate is 18% on metal sector they will same as 18% after GST bill.

For Telecom Sector

If GST bill tax rate will considered as 20% or more than 20% than it will give negative effect on Shares of Telecom Sector. In telecom sectors, Companies have near about 15% tax rate. If tax rate will increase much more then it will give much more negative effect on this sector.

For IT Sector

According to the experts, GST will give negative effect on IT sector, but not so much effect gives only little bit effects. Because they will pass on it further. Currently tax rate is 15% on IT sector and after GST this will increase by 3% to 4%. This effect will see on small IT companies. Increasing 5% tax rate not will give any effect on big IT companies.

For Restaurant Sector

Experts says we can see GST effect on restaurant sector. For long term it will not give so much effect on it because after GST consumer expenditure might increase and intern the demand in FMCG industry will increase. This will give good long term effect on all companies.

Here we have discussed about the GST bill and its effect on market. For Demat and Trading Account you can go with Brokers Analysis and check the comparison of top stock brokers.

Brokers Analysis

Long Term Effects of Britain's Exit From European Union

As expected news of BREXIT (or unexpected, doesn’t matter) came, along came the definitive volatility of markets globally. This has created major uncertainty about future of Britain’s bilateral trading arrangements, with important markets like the USA, Canada, China and mainly European Union. Also, speculations on changes in European Union's policies after this exit have became the most highly anticipated target by traders, investors, organisations, banks and even governments world over.

Also, European Central Bank and Bank of England are on alert for a funding crisis in the banking sector and may in turn could took into consideration of cutting interest rates if the situation calls. This uncertainty following the referendum up to parliament’s decision will keep markets highly volatile.

Also, new policies by both entities would be to stabilise economy and bring back the country to growth path.

One of the impact of decision by Parliament of Great Britain will be to look forward if other member countries will egress, by taking similar referendum to their respective constituencies.

Impact of BREXIT on Indian Markets

Its’ very important day for all the market’s, and we are here to discuss about the Indian Market. Is really BREXIT impacts on the Indian market?

June 24, 2016 decide whether it should “remain” in the EU or “leave”.

In Indian Market, impact of Brexit will effect or not. May by market goes down may be market goes up. Time will decide what will happen.

Impact on Currency and Markets

If really Brexit leave from the market so it will hit the Indian market as well as other market also. We are here to discuss about the Indian market. It really will hit the Indian market.

Stocks of UK and US will fall in between 15% to 20% event of Brexit. For Indian Market, it will give more affects. Indian markets endure changeable over the UK’s referendum.

For being time, the central bank and capital market regulators in India are on an alert condition to shun volatility in the markets.

The RBI is continuing a close watch on developments, and will take all important moves, including liquidity prop, to make sure orderly conditions in financial markets, the RBI said in an announcement on June 22.

Impact on Trade

In financial year 2016, India-UK bilateral trade was worth nearby$14 billion. India exported goods and services worth nearby$8.8 billion while imports from the UK were at nearby $5 billion. In the last five years, the trade has been more or less shed.

After Brexit- UK, the bilateral trade agreements between both the countries will be discuss on new terms. And hence will further impact the trade policies, import exports norms and currency pegging.

Since the currency Euro was a free float one, impact on exiting of British pound had a negative impact on the performance of Euro, as it was one of the strongest contributing currency.

Impact on Companies

India companies overseas (approx 800) operating in European region will definitely be impacted due to this decision of Britain exiting, as Britain serving as a main point of entry in European markets.

Indian companies will have to revise their existing strategies as UK domestic market is greatly dependent upon Europe for its imports and exports.

If Brexit happens, Indian interfaces like the Tata Group, have big operations in the UK. Jaguar Land Rover, Britain’s biggest car maker is kept by the Tata Group could be hit by losses. And the annual profit of these companies will drop in upcoming years.

Brexit also will have major impact on the automotive industry. That’s a big worry for the automotive industry.

In Summary: 

Rupee may decline due to the double fallout of foreign fund lose and dollar increase. This will raise the petrol and diesel prices to duration. Also effect on prices of electronic goods, gold, among others will increase. Also impact on IT services.