GST (Goods and Service Tax), the biggest tax reform in the country has been implemented from July 1st, 2017. It is an indirect tax for the complete nation, which will remove all the other taxes and will make India one unified common market.
Reduction in transaction costs of doing business would undoubtedly lead to improved competitiveness for trade and industry. GST will affect each and every sector of the country along with the living standards of the residents.
Looking at the federal structure of India, the GST is implemented in a dual format including a Central GST (CGST) and State GST (SGST). Both central and state governments will simultaneously levy GST across the value chain, in which, the central government would levy and collect Central Goods and Services Tax (CGST), whereas, States would levy and collect the State Goods and Services Tax (SGST) on all the transactions.
The GST will affect almost every sector of living in the country, let us see at some before GST and after GST price examples, which will show us a demo of what we will have to deal in daily life.
|Base Price||Current Taxes*||After GST|
|Life Insurance||Rs 15,000||Rs 2,250||Rs 2,700|
|Gold Ornaments||Rs 60,000||Rs 1,800||Rs 2,000|
|Hotel Stay||Rs 7,000||Rs 1,400||Rs 1,960|
|Refined Cooking Oil||Rs 200||Rs 23||Rs 10|
|Air Travel (Economy)||Rs 5,000||Rs 300||Rs 250|
|Train Travel (AC)||Rs 3,000||Rs 131||Rs 150|
|Telecom (2 phones + 1 DTH bills)||Rs 2,500||Rs 375||Rs 450|
|Eating Out (4 members)||Rs 2,000||Rs 270||Rs 360|
|Apparel (Readymade)||Rs 2,000||Rs 130||Rs 240|
|Entertainment (4 members)||Rs 1,200||Rs 360||Rs 336|
Note*- The current taxes include excise, sales tax, VAT, entertainment tax, luxury tax etc. An average amount of these taxes are considered.
These are some examples from daily life, which have been affected by implementing GST. Average base price of these categories has been taken to show you after GST and current scenarios of taxes.
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