GST! The tax bomb exploded on 00:00 hours on July the 1st of 2017 amidst the boycott of the event by the party which introduced the bill. The bill which had been stuck for over a decade, came into effect today.
Let’s get straight to the point.
Here are the effects of GST on the consumers, businesses and the Indian economy:
- Efficiency of the taxation system will improve significantly.
- Tax base widens.
- One nation, one tax, which means an national market.
- Several state and central taxes are ousted by GST.
- A fair business playing field.
- Automation of compliance procedures
- Tax credit for manufacturers.
Here are the things that will become expensive:
- Eating at restaurants.
- Travel expenses
- Credit card bills and insurance premiums
- Jewelry like gold,silver,diamond and other precious stones.
- Telecom( TRAI has asked the government to reduce the tax).
- Cheese and butter
- Baby food
- Transport vehicle,etc.
Things that will be cheaper:
- Food grains
- Common salt
- Musical instruments
- Iron ore
- Renewable energy devices
- Stationery, etc.
- Removes custom duties on exports.
- Inflation is expected but could be checked because of the anti-profiteering powers of the bill.
- Increases the revenue of the government.
- The bulk revenue makers for the government like real estate, electricity, alcohol, cigarettes,etc were not included in any of the slabs.
- It is flawed because of multiple rates.
It’s definitely a good economic reform for a better and a stronger economic future.