India’s most awaited and game-changing Goods and Services Tax Bill is out after attaining the massive support from all the houses including the judiciary. According to the recent reports, the bill will be implemented throughout the country from July 1st of 2017. From the very inception, this bill is believed as the life savior for many categories of people.
The primary objective of the bill is to take care of the all classes of people, protect them from being looted. Though the four key bills regarding the GST were passed are now passed, the further backend work will be done in the two months and this new tax structure will be on the table from July 1st. While the GST Council has
Various norms and regulations regarding the tax refund, registration, invoice debit and credit, the framework on input-tax credit, valuation, transitional provisions, and composition will be determined at the next GST Council meeting scheduled for May 18 of this year.
Everyone agreed to GST as it develops the idea of imposing the unified tax in which VAT, customs, and duties and service tax were included. This tax will also serve to reduce the current costs of production and boost the manufacturing sector. It is expected that under the new GST regime, the cost of manufactured goods will come down, ironically the cost of services is expected to increase by certain factors.
Post the completion of various approval criterion, Central Finance minister Arun Jaitley addressed the CII annual conference on Friday and promised not to spring any surprises in fixing of the tax rates under the GST regime.
“We are now in final stages of fixing tariffs for different commodities. The formula under which it is being done has also been explained and therefore nobody is going to be taken by surprise, it’s not going to be very significantly different (from the present),” said Jaitley.
Despite the statistics and corporate numbers, it is assured that the prices of various goods and basic amenities will go down which will help the lifestyle of the common man.
Following are the few things which will be cheaper from July 1st:
- Cars- As it is mentioned above, prices of goods will come down which in turn results in the reduction of manufacturing costs.
- Batteries- The unified tax rated will bring the prices of batteries down significantly. The sector currently has to shell out 40-45 percent in compounded taxes.
- Movie ticket- Lowered rates of entertainment taxes will ensure that the costs of movie tickets will be dropped.
- Cabs: Travelling via cabs or taxis is set to get cheaper, especially where inter-state travel is considered.
- Electronics items- Appliances like fans, lighting, water heaters, air coolers, geysers etc. are expected to become cheaper after GST.
- Mobile Phones- GST will remove the VAT applied on mobile phones making them cheaper more equally priced in every state of India.
- Construction material- Construction materials such paint and cement are likely to turn cheaper. This will give a great boost to the construction industry.
- Packaged food- Processed and packaged food items will get cheaper in the coming days.
- Transportation- Transportation of goods from one state to another is expected to become quite simplified in the coming days. The abolition of VAT will make the process less costly.
- Online Shopping- Shopping for a vast variety of products via online portals such as Flipkart and Amazon will become significantly cheaper.
GST classified the whole goods in four categories and the individual percentages of taxes were imposed on each of them as 5, 12, 18 and 28 percentages. It must be noted that there’s no possibility of looting people by adding the extra charges, as the wholesome will be according to the certified percentages.