GST India – Tax Rate, Effect on People and Benefits
GST effect on people:
Currently, center govt and state govt take many types of taxes on many goods and services, after GST tax will be same on every goods and service.
There are many taxes as service tax, central sale tax, state sale tax, the effect of these taxes will end after GST.
Currently, we pay 30% to 35% taxes on each Goods and services that reach 50% directly or indirectly. After GST it will be approx 18%.
GST to ease taxation process, bring in transparency.
GDP will be increased 1 to 2% after GST.
GST will increase cost of living:
GST Effect on Packed Food – Currently govt doesn’t get duty tax on packed food, On some food, we pay 4 to 6% duty tax but after GST packed food priced will be increased because packed food owner will be paying 18% GST tax on them.
GST Effect on Jewelry: Govt takes 3% duty tax on jewelry that will be increased by 18% after GST.
GST Effect on Ready-made Garments – State govt takes 4 to 6% VAT on readymade garments but after 18% GST the garments price will be increased.
After GST discount cost will increase because GST will be impacted on MRP.
Every type of services will be costly from today because the tax will be increased from 15%(service tax) to 18% (GST).
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Benefits of GST to the common man:
Now we pay 30 to 40% tax on the small car after GST(18%) the price of the small car will be decreased 45000.
To buy a home we paid both service tax and VAT but after GST we will only pay 18% GST.
Now we no need to pay different different tax on food in the hotel.
Home appliances cost will decrease after GST, current we pay 12.5% exercise and 14.5 VAT on home appliances.