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    GST Helpdesk

    An expert answers your questions pertaining to the new tax and its impact

    GST Helpdesk
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    Chennai

    How will professional service providers with operations in multiple states be impacted by the GST? Sridhar Krishnamurthy, KK Nagar

     Prior to GST, service providers having operations in several states were filing just two service tax returns per year due to centralised registration with the Central government. Now, they would need registration in each state they operate in and pay taxes to respective state government as SGST and CGST or IGST as may be the case. In case of intra state supply, they will pay CGST and SGST in the state they are operating in and IGST in the case of interstate supply. The rate has gone up from 15 per cent to 18 per cent for most of the services. This would result in increase of compliance cost manifold which they may want to pass on to consumers. While this will not impact B2B, it will certainly impact the pricing of B2C.
    — D Arvind, Managing Partner, D Arvind & Associates, LLP

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