About GST
What is GST (Goods And Service Tax) ?
In simple way I can say that today we have multiple taxes on a single product .But after, GST will get all these taxes converted into one.
It was originally planned to be implemented from April 1 , but it extend to three months. It will be launched at a grand function in the historic Central Hall of Parliament in the presence of Honorable President Of India Shri Pranab Mukherjee ji on the midnight of June 30.
This is the biggest tax reform since independence will gradually re-shape India's business landscape by making the country an easier place to do business between states . It would unify the USD 2 trillion Indian economy and 1.3 billion people into a single market, as per reports.
GST over the medium to long term is expected to lead to higher revenues for the Centre and the states while also increasing the size of the economy and having a positive impact on the GDP. It also expected to check tax evasion and in the long run due to a rise in the number of the assesses.
GST is all about ONE NATION ONE TAX
The GST regime will impact prices of a multitude of goods and services. The GST Council, chaired by Finance Minister Shri Arun Jaitley and comprising of his state counterparts, has already categorized over 1,200 goods and 500 services in tax slabs of zero, 5, 12, 18 and 28 per cent.
Most manufactured goods are expected to turn cheaper while services will become more expensive with the introduction of the new goods and services tax.
For manufactured consumer goods, the current tax regime means the consumer pays approximately 25-26% more than the cost of production due to excise duty and value added tax. With the GST rate expected at 18%, most goods are expected to become cheaper.
The effective service tax rate at present is 15% and it applies to almost all services other than essential ones such as ambulance services, cultural activities, certain pilgrimages and sports events. If GST is implemented, this rate will increase to 18% making services more expensive. Consequently, eating at restaurant, staying at hotels and air travel will turn costlier. Similarly, insurance premiums and investment management which attract a service tax currently, will also become costlier with the higher rate of GST.
Ther service tax increase on these following;
It was originally planned to be implemented from April 1 , but it extend to three months. It will be launched at a grand function in the historic Central Hall of Parliament in the presence of Honorable President Of India Shri Pranab Mukherjee ji on the midnight of June 30.
This is the biggest tax reform since independence will gradually re-shape India's business landscape by making the country an easier place to do business between states . It would unify the USD 2 trillion Indian economy and 1.3 billion people into a single market, as per reports.
GST over the medium to long term is expected to lead to higher revenues for the Centre and the states while also increasing the size of the economy and having a positive impact on the GDP. It also expected to check tax evasion and in the long run due to a rise in the number of the assesses.
GST is all about ONE NATION ONE TAX
The GST regime will impact prices of a multitude of goods and services. The GST Council, chaired by Finance Minister Shri Arun Jaitley and comprising of his state counterparts, has already categorized over 1,200 goods and 500 services in tax slabs of zero, 5, 12, 18 and 28 per cent.
Most manufactured goods are expected to turn cheaper while services will become more expensive with the introduction of the new goods and services tax.
For manufactured consumer goods, the current tax regime means the consumer pays approximately 25-26% more than the cost of production due to excise duty and value added tax. With the GST rate expected at 18%, most goods are expected to become cheaper.
- Prices of cars, two-wheelers, SUVs may drop.
- Movie ticket prices may come down due to lower entertainment tax
- Electronics items like fans, lighting, water heaters, air coolers, etc. could get cheaper
The effective service tax rate at present is 15% and it applies to almost all services other than essential ones such as ambulance services, cultural activities, certain pilgrimages and sports events. If GST is implemented, this rate will increase to 18% making services more expensive. Consequently, eating at restaurant, staying at hotels and air travel will turn costlier. Similarly, insurance premiums and investment management which attract a service tax currently, will also become costlier with the higher rate of GST.
Ther service tax increase on these following;
- Hotel and restaurants may become dearer.
- Your mobile phone calls may get costlier as service tax will go up.
- Airline, train tickets may become more costlier due to increase in service tax.
Mr. Shubham Dayma
ReplyDeleteVery good blog on GST. Thanks for giving such important information. From - Sanjeev Kumar
🙏🙏 thanks
Delete