Question

Write any three demerits of UGST.

Answer 1

1. Several Economists say that GST in India would impact negatively the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.
2. Another criticism is that CGST, SGST are nothing but new names for Central Excise/ Service Tax, VAT, and CST. Hence, there is no major reduction in the number of tax layers.
3. A number of retail products currently have only four percent tax on them. After GST, garments, and clothes could become more expensive.