1. Agriculture: Agriculture accounts for 16% of the Indian GDP, which is the largest contributor to the Indian economy. Big brands in the agriculture sector have got a big relief after GST, as they no longer have to worry about the huge cost of transportation across states in India. GST tax exemptions have helped big brands save their capital and invest it in more productive sectors.
2. Automobile: The benefit of GST for automobiles was received the most by the customers. Adjusting all the different types of taxes like sales tax, road tax, VAT, excise duty, etc. into one tax led to a surge in automobile sales like never before. This helped many big brands in the automobile industry to achieve record growth in the year 2018 and 2019! Customers with credit cards were especially involved in this growth in the automobile industry, where they could also save on interest rates due to GST.
3. FMCG: The fast moving consumer goods industry has also benefited greatly from GST. With significant savings in logistics costs and even distribution costs, big brands in the FMCG industry have taken great advantage of GST registration in the last few years. The main reason for this is that GST has helped brands eliminate the cost of creating various sales depots.
4. E-commerce: The growth of the e-commerce sector was skyrocketing even before GST came into existence. However, with the help of GST, not only have big brands grown rapidly but have also reaped the long-term positive impact of this tax regime. It is being said that many big brands are not very happy with the “Tax Collection at Source or TCS” mechanism introduced by GST. Right now the TCS rate is 1% but it is expected to increase more in the coming years based on the sales and revenue of big brands in e-commerce.
5. Logistics: The logistics industry, in some ways, is the backbone of the Indian economy. The “Make in India” initiative coupled with GST has proved to be a boon for the big brands in the sector. With a significant boost due to the tax regime, the big brands in logistics have spread across the country and expanded their operations to take advantage of the potential success for their customers and investors.
6. Real Estate: The real estate sector is playing a key role in generating employment in India. The implementation of GST has seen a huge increase in accountability and transparency in the sector, which has been a key factor in the growth of the sector in the last few years. Moreover, the industry is dependent on tax rates and a single tax system for all has helped make the operations of big brands more streamlined and efficient. However, since brands are now in the public eye, they are being held accountable for any of their mistakes, which has fueled the growth of many emerging brands in the sector and has made a significant impact in the industry.
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Conclusion
The implementation of GST has had several impacts on the Indian economy. However, the consumers are the winners, as they no longer have to pay an extra amount in the guise of indirect taxes. The GST tax system may have some disadvantages, but overall, it has positively impacted the Indian economy and boosted the growth of all kinds of businesses. Moreover, it has also attracted a lot of attention from foreign businesses and provided a much-needed investment opportunity for them in the country.
Big brands have seen a majorly positive impact of GST registration, as it has helped them save a lot of capital and invest in other relevant resources to grow their business.
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