- What is GST , How’s it work , Impact on business and personal
- GST fullform is goods and service tax.
Goods and service tax law in India is a multilevel destination based tax.
Gst has replaced many indirect tax laws.
How Gst works :
Gst would apply to goods other than crude petroleum, diesel, natural gas.
Gst will comprise of three parts
1) CGST : CENTRAL GST LEVIED BY CENTRAL GOVERNMENT
2) SGST : STATE GST LEVIED BY STATE
3) IGST : INTEGRATED GST LEVIED BY
CENTRAL GOVERNMENT ON INTER STATE SUPPLY OF GOODS AND SERVICES.
How Far affect common people
Its mix feelings..
Some of things become expensive and some of become cheap.
Eating out to get expensive, phone bill to get expensive, Ready-made garments to get cheaper, buying phone to get expensive, led TV get cheaper, jwellery get expensive..
With due respect Gst should benefit all section of the society. Also get national wide tax could increase to higher inflation in few years but would gradually enhance the overall GDP.
It’s again mix feelings ..
Ease of doing business removes double taxation reduce the tax burden on new business..
Avoid double taxation, improve logistics, faster delivery of services are some of the positive points of the Gst.
Real estate industry get also mix taste . 18% tax on real estate.. Under gst either developer will have to bear the high tax or further pass to end.
Who will not pay GST
Businessses with annual turnover for 20lacs ( 10lacs rs for special category states) would be exempt from GST.
Moreover petroleum products such as petrol diesel ,aviation turbine fuel have been kept out of gst.
What become cheap ?
The auto sector get benefit from this new get tax. The cost of entry level class, SUV Cars and two wheelers is likely to fall.
Not only Cars but car battery price also fall. Electronic household appliances like fans, lightning water heater ,AC etc prices reduce.