Hello guys..!! In my last post about GST (goods and services tax), I talked about what is GST and its possible affects in the country. Now as the GST rolled out in Indian taxation system, let me picturise you the aftermath of it in India.
On 1st of July 2017, joining the elite group of countries, India launched GST writing off all the indirect taxes and cascading..
A historic midnight session in the central hall of parliament in New Delhi took place and at exactly 0000 hrs Pranab mukherjee, the ex-president of India and Narendra Modi, PM of India pressed a button on a glass box to mark the launch of GST. With its launch every state and central levies got replaced by a single tax.
But as India is a very large country, both area wise as well as population wise plus having lots of small and large scale traders, it is an uneasy task to get everyone on-board.
Recalling many historic occasions in Central hall, including the first constituent assembly held on December 6, 1946 and the historic night of 14 August, 1947 (A night before officially declaring India independent of British rule), PM Modi called GST as a good and simple tax, that will end the harassment of the traders and small business and also integrate India as one market with one tax rate. Apart from systematic approach towards taxation, it will also end time delays at state borders as only simple tax will be applied rather than many taxes (direct as well as indirect).
Stating the benefits of GST, Modi said, it will be more transparent and simple and that lead to curb corruption. He added that with GST, new culture of governance will emerge, ending the tax terrorism and inspector raj.
POST IMPLEMENTATION:
As i said earlier India is a vast nation with varied tax culture, it is an uneasy task to creep the GST into Indian tax system. The traders and small businesses are having a very stressful days as because of GST, their businesses almost gets standstill. Material supplies took a heavy hit across the border due to GST as incorporating new tax system and eliminating others look tougher than expected.
The firms need to register themselves for GST. The registration is too painful for the businessmen as the server is constantly glitching due to heavy rush. As the effects took place in every item, people doesn't fully understand which product or services viable for how much taxes.
There is a set of rate for GST on almost every product, and that percentages are 0%, 5%, 12 %, 18% and 28%. Almost 50% of the product are going to have 18% tax rate.
Here i managed to get some hand on GST rats on everyday items:
FOOTWEAR AND APPARELS:
Footwear that are higher than INR 500 will applicate 18% GST and footwear below INR 500 would have only 5% GST. If we talk about ready garments then it is reduced to 12% from existing rate of 18.16%.
CAB RIDE:
From the earlier 6% tax, the cab rides now comes down to 5%. It is not much but still daily travellers would find their pockets easy now.
TRAIN FARE:
India has the most populated train travelers, which is approximately 2.2 crore. So, considering every categorized citizen, GST on rail comes with variations. People who travels for business purpose can claim Input tax credit to reduce their expenses. Those who travells in local trains or sleeper class would not be affected but AC or first-class travellers will have to pay more.
MOVIE TICKETS:
18% tax rate is going to be applied on movie tickets costing less than 100 INR and tickets higher than INR 100 will generate 28% GST. So, choose your movie wisely!!
DTH AND CABLE SERVICES:
Earlier, the entertainment tax implies were in the range of 10% to 30% plus additional 15% service tax. Now, with GST, it is reduced to flat 18%.
AMUSEMENT PARK:
Everyone loves hanging out at amusement park, mostly kids. But, with the implementation of GST the rate rose higher to 28% from an earlier 15%.
RESTAURANT BILLS:
Now eating your meal will depend upon whether you eat at an AC or NON-AC room. Dining in 5-star hotel will cost your pocket 18% GST on your bill and dining at a NON-AC room will have 12% GST. Small hotels whose turnover could not get over 50 lakh annually will be applicable for only 5% GST.
HOTEL STAY:
If your daily tariff is below INR 1000, then you will be ambient under no GST. Between INR 1000 to INR 5000, you have a wide range of GST depending upon hotel class or AC / NON-AC etc. Above INR 5000, a flat 28% GST will be incurred.
MOBILE PHONES AND BILLS:
Mobile phones got costlier post GST implementation by 4-5%. Even mobile bills too, got costlier as GST would be 18% against earlier tax rate of 15%.
EDUCATION AND MEDICAL FACILITIES:
Education and Healthcare are exempted from GST regime along with pilgrimage also. All in all there are over 60 services that are kept outside the ambit of GST.
So guys, there are positives and negatives of GST implementation. Some goods or services remain intact in terms of tax rate or some get higher or lower.
So, how has your experience been with GST so far?? Let us know in the comment section.
Follow us here:
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Twitter: @NewAgeInformers
Instagram: @new_age_informers_
Recalling many historic occasions in Central hall, including the first constituent assembly held on December 6, 1946 and the historic night of 14 August, 1947 (A night before officially declaring India independent of British rule), PM Modi called GST as a good and simple tax, that will end the harassment of the traders and small business and also integrate India as one market with one tax rate. Apart from systematic approach towards taxation, it will also end time delays at state borders as only simple tax will be applied rather than many taxes (direct as well as indirect).
Stating the benefits of GST, Modi said, it will be more transparent and simple and that lead to curb corruption. He added that with GST, new culture of governance will emerge, ending the tax terrorism and inspector raj.
POST IMPLEMENTATION:
As i said earlier India is a vast nation with varied tax culture, it is an uneasy task to creep the GST into Indian tax system. The traders and small businesses are having a very stressful days as because of GST, their businesses almost gets standstill. Material supplies took a heavy hit across the border due to GST as incorporating new tax system and eliminating others look tougher than expected.
The firms need to register themselves for GST. The registration is too painful for the businessmen as the server is constantly glitching due to heavy rush. As the effects took place in every item, people doesn't fully understand which product or services viable for how much taxes.
There is a set of rate for GST on almost every product, and that percentages are 0%, 5%, 12 %, 18% and 28%. Almost 50% of the product are going to have 18% tax rate.
Here i managed to get some hand on GST rats on everyday items:
FOOTWEAR AND APPARELS:
Footwear that are higher than INR 500 will applicate 18% GST and footwear below INR 500 would have only 5% GST. If we talk about ready garments then it is reduced to 12% from existing rate of 18.16%.
CAB RIDE:
From the earlier 6% tax, the cab rides now comes down to 5%. It is not much but still daily travellers would find their pockets easy now.
TRAIN FARE:
India has the most populated train travelers, which is approximately 2.2 crore. So, considering every categorized citizen, GST on rail comes with variations. People who travels for business purpose can claim Input tax credit to reduce their expenses. Those who travells in local trains or sleeper class would not be affected but AC or first-class travellers will have to pay more.
MOVIE TICKETS:
18% tax rate is going to be applied on movie tickets costing less than 100 INR and tickets higher than INR 100 will generate 28% GST. So, choose your movie wisely!!
DTH AND CABLE SERVICES:
Earlier, the entertainment tax implies were in the range of 10% to 30% plus additional 15% service tax. Now, with GST, it is reduced to flat 18%.
AMUSEMENT PARK:
Everyone loves hanging out at amusement park, mostly kids. But, with the implementation of GST the rate rose higher to 28% from an earlier 15%.
RESTAURANT BILLS:
Now eating your meal will depend upon whether you eat at an AC or NON-AC room. Dining in 5-star hotel will cost your pocket 18% GST on your bill and dining at a NON-AC room will have 12% GST. Small hotels whose turnover could not get over 50 lakh annually will be applicable for only 5% GST.
HOTEL STAY:
If your daily tariff is below INR 1000, then you will be ambient under no GST. Between INR 1000 to INR 5000, you have a wide range of GST depending upon hotel class or AC / NON-AC etc. Above INR 5000, a flat 28% GST will be incurred.
MOBILE PHONES AND BILLS:
Mobile phones got costlier post GST implementation by 4-5%. Even mobile bills too, got costlier as GST would be 18% against earlier tax rate of 15%.
EDUCATION AND MEDICAL FACILITIES:
Education and Healthcare are exempted from GST regime along with pilgrimage also. All in all there are over 60 services that are kept outside the ambit of GST.
So guys, there are positives and negatives of GST implementation. Some goods or services remain intact in terms of tax rate or some get higher or lower.
So, how has your experience been with GST so far?? Let us know in the comment section.
Follow us here:
Twitter: @NewAgeInformers
Instagram: @new_age_informers_
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