HOW WILL GST BENEFIT COMMON PEOPLE

Posted by TaxGuru India on July 6th, 2017

This post will be all about how GST will be benefitting to common people? What are the pros & cons of GST? What impact it’s going to create once it will be implemented?

GST or goods & services tax term is being selling like hotcakes since past few months. So we need to see whether we are well aware of the concept of GST or not. GST is already introduced & passed in Rajya Sabha & has also the consent of the President; GST is taking up shape to come in real form in anytime now. Though many countries around the world have already introduced GST in their economic structure & India will fall into that list in no time now. GST is a kind of umbrella term which will include all indirect taxes but at a uniform rate. A single GST will now replace taxes like VAT, CAD or CST or any other kind of service taxes. There will be mainly 5 slab rates for GST i.e. 0%, 5%, 12%, 18% & 28%. According to GST 5% will be levied on products like packaged salt & other spices whereas food grains will remain out of the taxation. Whereas commonly used products such as toothpaste, soaps & others will have a tax rate between 12-18%. Products like air conditioner, washing machines will have tax rates of 28%. Luxury good will have the highest taxation rate of 28% with some additional rate imposed on it. Products like tobacco, aerated drinks, alcohol have been kept out of GST preview.

PLUS POINTS OF GST

• Brings under itself all kinds of indirect taxes
• Abolishes the wrongful deed of ‘taxes on taxes’
• A major reduction in the amount of manufacturing costs as the burden of different kind of tax payment will be lifted up from the manufacturing sector.
• Give a boost to the export business as no more exporting companies have to pay heavy taxes
• Increase in employment opportunities in near future.
• Since GST will be levied on the final destination of consumption it means the authorities will be having a clear & vivid picture as where the good is being taken to.
• GST will help the system to have a corruption free economy as from now on a single product cannot be taxed more than once anymore.Click here to read about GST rate schedule for goods.

NEGATIVE POINTS OF GST

• It is the time when small scale traders & service providers who are dealing with inter state sellable goods must get themselves registered, & pay GST & also file the GST returns irrespective of whatever they earn at the end
• Presently 18% is being charged for services that are provided & in this if GST comes into action then the cost of services will shoot up making services such as telecom, airlines & banking much expensive.
• Now to adjust these new expensive services common people have to reschedule & reshuffle their budget making nick knacks here & there.

Read More about Negative list of gst