The whole nation is talking about GST, Goods & Services Tax. Some celebrating it as a progressive move while many are unhappy believing it’s going to wreck havoc on their business.
Let’s see what GST is all about and what is getting costlier and cheaper.
WHAT IS GST AFTERALL?
India had a midnight tryst with ‘One Nation, One Tax’ on June 30.
FUN FACT : A baby girl born on July 1 at 12.02 am, her mother named her “GST”! Quite a Modi Lover!!
Goods and Services Tax (GST) is an indirect tax for the whole country, making India a single unified common market. In simple words, it is a single tax on the supply of goods and services, right from the manufacturer to the consumer. It can also be said to be a destination-based tax.
As per the GST Act, credits of input taxes paid at each stage is available in the subsequent stage of value addition, making GST essentially a tax only on value addition at each stage. The final consumer thus bears only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. In other words, it’s single VAT for the whole country.
WHAT ARE THE GST SLABS?
0% 5% 12% 18% 28%
NOW, let’s turn to see what gets cheaper and costlier!
Some of the goods and services getting COSTLIER
- Food items like Tea, coffee and spice
GST: 5 %
Earlier Tax rate: 3-4 %
- Household items & consumer durables like TV, ACs, Refrigerator, Washing machine
Earlier Tax rate: 23-28% (depending on the state)
- Services like mobile charges, insurance premiums, banking charges, broadband services
Earlier Tax rate: 15%
- Movie tickets priced more than Rs. 100
GST: 28% (impact state-dependent)
Earlier tax rate: varies from one state to another
- Mobile phones
Earlier Tax rate: 6%
- Laptops and desktops
Earlier Tax rate: 14-15 %
- DSLR camera
Earlier Tax rate: 25 %
- Leather bags
Earlier Tax rate: 6%
Earlier Tax rate: 26%
- Induction stove
Earlier Tax rate: 18.5%
Some of the goods and services getting CHEAPER
- Personal care products like soaps, hair oil and toothpaste
Earlier Tax rate: 24-28%
- Economy Class AirTravel
- Movie tickets priced less than Rs. 100
Earlier Tax rate: 25-30%
- Non-Luxury Restaurants & Hotels
- Household items like pressure cookers, pans
Earlier Tax rate: 19.5%
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