GST is the abbreviation of Goods and Service Tax which will be applicable from 1st of July,2017 all over in India.It will replace all other taxes levied by central and state government.
Taxes which will bound together under GST are:-
- Central Excise Duty
- Service tax
- Commercial Tax
- Value Added Tax (VAT)
- Food Tax
- Central Sales Tax (CST)
- Entertainment Tax
- Entry Tax
- Purchase Tax
- Luxury Tax
- Advertisement tax
With the GST, one state has to deal with the central government only to settle their tax amount and not with every other state. Under GST, taxes is divided in few slabs at following rates.
Slabs of the tax rate in GST:-
0%: – Open Grains and pulses, fresh vegetables, Open dairy products, egg, notebooks
5%: -Sugar, tea, coffee, cooking oil, skimmed milk powder, cashew & raisin, LPG
12%: – Ghee, butter, almonds, preservative fruit juice, pickles, mobile phones, medicines
18%: – Hair oil, toothpaste, soap, ice cream, computers, pasta, printer, corn flakes, cinema
28%: -Aerated drinks, Large appliances(AC, Fridge), Automobiles, entry into IPL matches and race courses
Things which get cheaper after implementation of GST
- Travelling in general/sleeper coach
- Air travel(economy class only)
- Luxury car & bikes(exempt with 2%)
- Cab services
- Eating in restaurants (turnover under 75laks)
- Apparels, few confectionaries & food items (Dairy products, biscuits, tea, coffee, sugar, soap, meat, honey, fresh vegetables, cashew, ketchup, salt & Ice cream)
- Hair oil
- Light fittings
- cotton, pillow, leather bag, paper napkin
- buying home & large appliances(fridge, washing machine, printer)
- Movie tickets
Things which get costlier after GST
- Living in 5 star hotel
- buying small cars
- AC coaches
- Insurance premium
- Bank transaction
- Mobile and credit card bills & payment(Raised with 3%)
- Tour packages
- branded clothes
- Cosmetics, shampoo, perfumes
Adhar Card will be the King:
Adhar Card linking is must w.e.f 01 July 2017.No PAN card without Aadhaar;
No PAN card without Aadhaar; No passport without Aadhaar Card.Linking of Aadhaar with PAN becomes mandatory.Linking PF account with Aadhaar.
Linking of Aadhaar with PAN becomes mandatory; Linking PF account with Aadhaar.
Benefits from GST:
Tax revenue for govt. will be increased while the burden of taxes will be reduced for the industry.
Things will go digital resulting reduction in paper work.
Prices will get low for many manufactured products.
GST is simple and clear. It will remove the barrier or stress of all heavy other taxes with the single tax i.e. With GST one nation one tax. Although if we talk about market, they are not yet prepared for GST disruption.Investrs need to be beware as govt will track all your records while implementing.GST bill has a potential to change the variations in stock market frequently as it is one of the biggest tax reforms to be rolled out.You should and is advisable to take share market tips or stock tips while investing in market.