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Impact of GST on Transport Industries:

Fundamentally, every industry is likely to benefit from GST, including the transport and logistics sector. With the implementation of GST, the overall process of taxation becomes simpler, less bureaucratic, and more efficient. This is particularly significant for the transport industry, which has historically been burdened with various levies due to inter-state logistic structures based on state taxation systems. The simplification brought by GST streamlines operations and enhances efficiency in the Indian transport and logistics sector.

Difference between CGST SGST and IGST:

Understanding the distinctions between CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax) is essential for businesses navigating the GST regime. While CGST is levied by the central government on intra-state supplies, SGST is imposed by state governments on the same transactions. On the other hand, IGST applies to inter-state supplies and is collected by the central government. Each tax serves a specific purpose within the GST framework, ensuring seamless tax administration across states.

Tour and Travel:

With the implementation of GST, the tour and travel sector experiences both cost reductions and increases, depending on the type of service. 

Cheap for the Common People:

Under the implementation of GST, the tour and travel sector witnesses varying cost dynamics, with certain services becoming more affordable for the general populace. Services such as non-AC rail tickets, transporting goods by train or truck, and cab services experience marginal increases in prices. However, other segments such as tour operators and air economy class see either no change or even a decrease in prices, making travel more accessible to the common people.

Expensive for the Business Class:

Conversely, the business class segment experiences a notable rise in prices following the implementation of GST. Air business class fares, in particular, see a significant increase under the new taxation regime. Despite the adjustments in pricing, GST aims to streamline taxation processes and stimulate growth across sectors, including the tour and travel industry.

No GST on Transportation of Certain Goods:

Under GST regulations, specific categories of goods are exempt from service tax. These include relief materials for disaster-struck areas, defense or military equipment, newspapers or magazines registered with the Registrar of Newspapers, railway equipment or materials, agricultural produce, milk, salt, food grains, organic manure, and more. By exempting certain goods from GST, the government aims to facilitate the movement of essential commodities and support key sectors of the economy.