Will GST impact Common Man life!??

As we see, GST has been implemented in India, w.e.f July 1st, 2017 which is a historical decision made by the Indian government. Today you can know some good information over GST and its impacts over the life of a common man.

What is GST?

Goods service tax is nothing but replacing all the hidden charges like Central Excise duty, commercial tax, VAT, Food Tax, Central Sales Tax, introit, Octroi, Entertainment tax, Entry tax, Purchase tax, etc into a single tax based on the definition of the product where it should fit among the defined slabs like 0%, 5%, 12%, 18% and 28%. Earlier the taxes were levied at both places where the product has been manufactured and the product where it has been consumed.

For example, if a product is manufactured in TamilNadu and being exported to Punjab, in the earlier scenario, the taxes have been levied by both TamilNadu and Punjab but now there will be only one tax payable that to Punjab.

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Effect on the common public:

We could see that the government has done a tremendous job in defining the tax based on the type of the product.

The government has brought the most necessity items like food grains, ingredients, milk, sweets etc from 5% tax to 0% tax, basic cosmetic necessities from 29% to 18%. On top of which the government has taken a fabulous job in bringing the coal from 12% to 5% to encourage the electricity production. This will definitely help India in maintaining stable inflation at least for a couple of years from now.

At the same time, the buying a new house would be slightly expensive than earlier as the tax slab has increased to 12%. The tax over the products that harm health has been increased which is a positive note. Surprisingly the tax over Cars has been reduced resulting dip in the price.

So overall, this GST project has been implemented compromising the normal public and encouraging ‘Make in India’ where there will be minimal taxes over exports.

– Written by Rohini Manohar

 

Reference URL : https://nenunaanijam.com/2017/07/02/will-gst-impact-common-man-life/

One thought on “Will GST impact Common Man life!??

  • July 4, 2017 at 4:51 pm
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    GST is economic game changer for india

    Reply

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