How GST Will Impact the Lives of Common Man

admin

March 30, 2018

GST Impact on Common Man

strong>Goods and Service Tax (GST) is one of the taxation systems which affect common people or consumers in India. Usually, all the old taxation systems in India is complicated, so it’s difficult for the common people to understand the about the GST concept.  You must know some basic points about GST before we proceed further.

Contents

Taxation Structure System in India

The Indian Constitution amendment divides the taxation powers into central and state government. Both the government have some exclusive areas where they can levy tax from the common people. Income tax is a direct tax, it is levied on the income or company profits, it is the exclusive area of central government.

GST is an indirect tax. It is levied on the supply of goods and services across India, at each stage of the supply chain, i.e., manufacturing of goods, supplying of good/ services and consumption. Generally, n India, indirect taxes levied on the manufacturing of goods or supplying of goods are the exclusive domain of the central government.

Taxes on the consumption of goods or services are the exclusive domain of state government. We have also listed the several types of Indirect taxes included in GST. The main aim of GST in India is to remove tax barriers between states and to create a single market. For this, the Constitution removed different layers of government exclusive powers to levy taxes. Finally the tax barriers between central and state automatically disappear.

It is expected that it would provide a positive impact in long term on most sectors. On the basis of other nation where GST is already implemented, India might experience an inflationary effect specifically during the introduction stage,  it is expected to fade with the roll-out of measures such as anti-profiteering.

Read moreProcess Of Assessment of Tax Liability Under GST

Here is a quick look how GST would affect common people or user:-

Services might be expensive after the implementation of GST in India are as follows:-

  • Luxury services such as  DTH services
  • Mobile phone bills
  • Premiums for insurance plans
  • Online Ticket Booking services
  • Investment in management and banking services

Price of sin goods are likely to increase

The government is likely to charge high tax rates on sin/ injurious goods which affect the health of the user or common people.

Prices of essential services are likely to increase

  • Educational and School Fees
  • Healthcare
  • Courier services
  • Residential rentals
  • Rail/ Metro Fares

Automobiles and vehicles are likely to drop a price

Under the GST taxation system, following items might be cheaper

  • Entry Level Sedan excluding small cars
  • Two wheelers
  • Luxury, SUV or premium cars

Basic food essential items will not impact with GST. Common people or users don’t affect with GST and the basic items are as follows:-

  • Washing machine
  • Shampoo
  • Toothpaste
  • Stove
  • Television
  • Soap

Anti- profiteering and other counteractive measures of GST is expected to control the cost.
GST app is a good platform for getting latest information, news, article and latest updates about GST in India. Android or iOS device users can easily download the app from play store. You can access the app in both forms offline or online as per your feasibility.
gst app android

caportal

Leave a Reply

Your email address will not be published. Required fields are marked *