conclusion of GST In India 2017-18 ? - GST In India

Friday, 19 January 2018

conclusion of GST In India 2017-18 ?

Erts and Economists see it as one of the largest Tax reform since independence.The majority of consumer goods on the current taxes are higher on the side. Most of the goods (for example, electronics, beauty products, non-luxury automobiles) attract an excise duty of 12.5% ​​and a state levy of VAT at 12.5% ​​to 15%. 

Additionally, in the current scenario, there is numerous cascading effect i.e. Tax on tax on the account of CST, VAT, Octroi, entry tax, local body tax, etc. till the product reached the ultimate end-customer. Such indirect taxes of a combined effect are 25% to 30% effective tax rate and the burden is With the unified rate of GST, the prices of the most goods will be significantly in the total indirect tax cost. 
This decrease in indirect tax can lead to decrease in manufacturing cost and increase in baseline profits, giving ample space for reducing prices and benefiting end-users.What will get cheaper? Branded goods: The indirect taxes on branded goods are down 18% . At present, the effective rate of taxes for these items is pegged at 23-24 percent. Hotels and Restaurants: Hotel stay after the implementation of GST will become cheap.
Currently, the tax rate on staying in hotel taxed at the rate of 22% which will come down to 18% tax bracket. 22 percent to 18 percent Food grains will get cheaper under GST regime Processed food products that attract 15% tax rate under existing scenario, GST under tax 5% tax on tax rate on entertainment services will come down from 22 percent to 18 percent under GST The soap which is taxed 28 percent under the current tax regime will be taxed at 18 percent under GST. Similarly, toothpaste will be brought down 18 percent from 22-24% current tax system 
Personal hair products - Hair oil will be cheaper as the tax rate will come down to 18 percent from existing tax rate of 28 percent Entry level cars, two-wheeler s, electric items, paint, cement, consumer durable are likely to get cheaper under the GST.
What is your pocket: all luxury goods, tobacco products, and aerated drinks will be 28 percent TAXES on Tea-coffee and masalas from 3 -9 percent will go up to 5 percent under GSTInsurance premiums, mobile bills, the internet, wifi, DTH service and banking charges will get expensive! School fees, air tickets, and courier services will be a little more expensive under GST Small cars will be a little expensive under the GST regime, with tax of 28 percent.
No tax will be levied on the following items: Printed books, newspapers, bangles, hand loom, natural honey, eggs, fresh meat, curd, milk, buttermilk, fresh fruits , prasad, sa lt, stamps, judicial papers, vegetables, flour, besan, bread etc. 
Advantages of GSTGST will reduce numbers of indirect taxes. GST the customer will be able to find out exactly how much is a product or service. Under GST the obligation of tax will be divided equally between manufacturers and services providers. In GST system prices, some manufactured goods and services Will go down which in turn will bring down the inflation and benefit the middle class. Business will become easier as all other indirect taxes like Octroi, central sales tax, entry tax, state sales tax, license fees, turnover tax GST tax. 
In GST there will be no hidden taxes and costs involved in doing business. Therefore, GST will bring transparency in all taxes.It will promote exports of the country that will not only boost economic growth but also generate employment.It is predicted that GST will also be impartially increased the country's GDP.With the advantages, GST also has some disadvantages , 
as follows: Disadvantages of GSTIt may disappoint people who want to buy new homes as GST can add up to 7 percent. This may thus effect negative on real estate industry as demand of consumers may decrease.There is no direct monetary tax benefit by GST. 
GST is nothing new, just a new name for various old tax collected as one.Since the mechanism is still complicated, it can not completely eliminate black money and tax evasion.Introduction of GST will also make Indian products competitive in the domestic and international markets. 
Last but not the least, this tax, because of its transparent character would be easier to admin. However, once implemented, the system holds a great promise in terms of sustaining growth for the Indian economy. 
Conclusion: Goods and Service Tax, with end-to-end IT-enabled tax mechanism, is expected to bring buoyancy to government revenue. It is expected that the malicious activity of tax theft will go away under Goods and Service Tax regime in order to benefit both governments as well as the consumer. 
In reality, that extra revenue is the government is going to generate will not come from the consumers' pocket but from the reduction