GST: How It Affects Common People

gst affects on common people

gst affects on common people

GST!

GST!

GST!

There’s a hue and cry all over about it. But what is it actually?

The full form of GST is Goods and Service Tax. The full form of GST is Goods and Service Tax. It is actually an indirect tax levied whenever a customer buys a good or service. This tax aims to make the country a united market by imposing a single tax all over the country. The main aim of this tax is to apply a single tax on the supply of goods and services in the whole country. This tax system will remove different layers of tax such as entertainment tax, VAT, purchase tax etc.

The tax system will apply a single tax from the point of manufacture to the point of purchase by the customer. This process includes all 29 states and 7 union territories of our country India.

Here are some details of GST bill:

Name of the Bill GST Bill
Name of tax Goods & Service Tax
GST tax rate 0%, 5%, 12%, 18% and 28%
Bill Passing Date 3rd August 2016
Amendment Number 122
Implementation Date 1st July 2017
Bill passed in Rajya Sabha
Motive To make a single tax system in India

 

What will be the GST rates?

Slabs New GST rates Current Rates Products
1 5% Upto 9% Edible oil, spices, tea, coffee
2 12% 9-15% Computers, processed food
3 18% 15%-21% Soaps, oil, shaving sticks
4 28% 21% Luxury goods

 

Food grains will have 0% tax to provide relief to the common masses.

The Financial analysts have analysed and brought out a list of things that will be more expensive than their current rates under GST. Below is the list:

  • The cost of cigarettes will be increased under GST as the price of tobacco will be more under GST than the current price.
  • The rate of staying in hotels or eating at restaurants will increase under GST.
  • Mobile phone calls will be costlier under GST.
  • If anyone opts to buy jewelleries, they have to pay 6% more than the production cost.
  • Airlines and railways tickets prices would soar up higher than before.
  • Online shopping will be costlier as the e-commerce industries will be obliged to pay tax under GST.
  • The rate of investment and insurance premium would be much higher than the existing rate under GST.

 

The Financial analysts have analysed and brought out a list of things that will cheaper than their current rates under GST. Below is the list:

  • Entry level cars, two-wheelers, SUVs will be cheaper under GST.
  • The cost of paint and cement will decrease.
  • Wood articles and plyboards will be cheaper. Current rate-26%, proposed rate-18%
  • Price of electronic items such as computer, refrigerator etc. will be cheaper.
  • Tickets for movies will be cheaper.
  • The price of DTH satellite TVs will decrease.

These are certain ways in which GST will affect its country and its people.

 

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