One India, one tax, one market”After all such a hype this latest mode by government has gone through, finally the time has come for a drastic change in the taxation policy of our nation. Lately, GST has been approved in the parliament by Lok Sabha on August 8, 2016. The Goods and Service tax bill, which is officially known as The (One Hundred and Twenty-Second Amendment) Bill, 2014 of the constitution. The tax will be implemented in India from April 1, 2017. Lets have an overview with its class and its effects on categories of people.
“Goods and Services Tax” is going to be a vast indirect tax on the manufacture, selling and consumption of goods and services at everywhere in India, which will be a replacement to last taxes levied by the central and state government. It is an indirect tax reforming policy which broadly focus on removing tax barriers between the states and creating a single market or a market as a whole.
Structure of GST
Impact of GST on class of people
GST for students.
Prices of phones, laptops and computers are going to rise. The cost of clothes, lipsticks and accessories related to,will also be going to increase. Fast food chains who are also in delivery such as Dominos, pizza hut and more, will still have free delivery and prices are not going to change.
GST for tech
Positive: It will have a deeper impact of digital services.
Negative: Cost of electronics will definitely rise. Duty on manufactured goods are up from 14-15% to 18%.
Positive: Taxes would go down by 2-4% which will lower the average ticket price
GST for middle class families as consumers
Reduced prices in call for competition, which always in favour of the consumers. Also, the simpler rules of taxation would motivate more investment.
GST for middle class families as automobile buyers
Positive: The price of vehicles are expected to be dropped by 8%.
Negative: Demand for automobiles may be vast up in the mid-term.
GST for middle class families in telecomunication
Positive: price of handset likely to come down.
Negative: Call charges and data rates are expected to be released if tax rate in the this structure increased by 15%.
All and all, if this taken in a broad concept, GST is such a method which could be equally beneficial for a person as a consumer, a manufacturer, a retailer and so on. Let us know your point of view in this subject and we will surely let you know it even more.