What is GST? What are the items whose prices may be up?
Posted on: 05/Aug/2016 5:43:53 PM - No. of views : (3306)
GST refers to the tax on products and services of different items by the central government at the national level. Currently, the taxes for the above vary for different states, In order to remove this and bring a uniform tax system, GST is proposed to be implemented. GST can be considered as the consumption or usage tax.
With GST, the tax system will become transparent. It will be simpler. The common public can easily understand which products are taxed or not taxed. So, the collection of taxes will also become easier. The revenue of the government will also increase.
Entrepreneurs can start their industries in the ideal suitable places instead of looking at the aspect of taxes to be paid. And selecting. This will lead to a healthy competition in the industry.
As of now, a product is priced higher because of different tax systems in different places. This is why the proposal for GST for uniform tax system for products and services.
As the ruling party BJP has a comfortable majority in the Lok Sabha (parliament), The bill was passed and approved without any difficulties.
Recently, it was approved in Rajya Sabha as well on 3rd August.
The benefits of implementation of GST:
- The prices of consumer items will come down.
- The prices of consumer durables such as refrigerators, televisions, and air conditioners will reduce.
- The prices of cars will also come down. Until now, the car manufacturers are paying taxes up to 30 percent. GST will be around 18 percent though yet to be decided officially. If it is 18 percent, car manufacturers will benefit by 12 percent from the earlier system. This will be passed on to the buyers.
- The prices of construction materials and paints will come down.
- It is expected that the prices of cell phones, cigarettes, air-fares, and medicines will also come down.
