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Discussed in detail in this link:
http://tradingqna.com/10143/does-gst-implementation-reduces-stamp-duty-stt-or-ctt
What is GST?
The goods and services tax bill has been finally passed. In the medium and long term,
this seems to be a reason for rejoicing. The tax is a consolidation of the many taxes that
are paid now.
Everything like Value Added Tax, consumption taxes, excise duty and others will be
brought under the single heading. Depending on the rate the GST is fixed at, it may
actually reduce tax burdens on various sectors and boost consumption and thus growth.
There will only be three types of taxes, Central tax, state tax, and inter-state tax.
The Impact of GST on Market
In general, the GST appears to be a good thing. Many experts predict that after the bump
that will be caused in the short, this will boost growth as well as foreign investment.
In the short term, due to the sectoral changes that will be required to implement the GST,
there may be fluctuations and problems.
It is possible, but not certain that the GST will cause some growth in inflation.
GST and Trading Taxes
The other important thing in trading and stocks is how GST will impact taxes in many
cases:
- Whether or not interest income will remain tax-free
- If fund based activities will fall within the GST net
- Since goods and services are now to be treated equally, broking services may be
- affected
- With the new structure, the centralized approach of many financial service agencies will need to be addressed, as inter-state handling may become more difficult
It is not yet entirely clear what new regulations the derivatives market will be under, but with the simplification of the process and reduction of indirect taxes; it is likely that the market will improve