Prime Minister Narendra Modi at Friday, 30th June midnight put in motion the Goods and Services Tax (GST), the biggest tax regime in India. GST rollout is eventually expected to bring maturity and wisdom to the Indian democracy. Admitted to be the biggest and most ambitious tax reform, GST is being termed as an act of collective thinking and of the broader purpose by the leaders of our country. The ‘reform of the century’ was rolled out in the Central Hall of the Parliament. The unveiling of the GST had been planned for months and it is a reform with consequences never before seen in India. This surely is a cause to celebrate!
The GST IMPACT: The impact, both short term and long term depend on how well the changeover is planned, and how swiftly the economic agents will fine-tune to the new normal. With the States, giving up much of their most important power of imposing taxes, the question is that will the people get the real advantage? GST has received enormous publicity and the great benefits spoken about the ‘one nation, one tax’ by both the government and the industry leaders have already raised high expectations. In this article we bring to you a simplified GST format to give you more clarity on what has changed.
GST Implementation in India
|PRODUCTS THAT GOT COSTLIER|
|Name of the commodity||Pre-GST||Post-GST|
|TVs and ACs||26%||28%|
|Credit Cards and NEFT||15%||18%|
|Mobile & telephone bills||15%||18%|
|Business class air tickets||9%||12%|
|Small cars||25-27%||28 + 1%|
|Hotels/Restaurants (Depending on the place)||18-25%||28%|
|Shoes > Rs. 500||14.40%||18%|
|PRODUCTS THAT GOT CHEAPER|
|Shoes < INR 500||14.4%||5%|
|Garments > INR 1000||18.5%||12%|
|Soap, hair oil||24-28%||18%|
|Pressure cooker||19.5%||12 %|
|Economy class air tickets||6%||5%|
|Garments < INR 1000||5-6%||0.05|
|Movie tickets > INR 1000||25-30%||0.28|
Reasons that make GST rollout a decisive event:
It puts in place the rules-bound tax system of one-product-one-tax.
- It can potentially slash India’s high logistics costs by speeding up the movement of goods across state borders and even within states. This will make the country’s goods and services more competitive.
- GST is discouraging tax dodging and thus expanding the revenue base for the government, without hurting the businesses or the consumers.
- GST is common-man friendly and will level the playing field for small traders in the country.
In conclusion, GST will help both the common man and the economy. To support the move and make the journey of businesses as well as tax payers seamless and effective, we at Techjockey have GST software and registration available. We understand that the potential benefits of this historic reform will bring rationalized taxation and benefit the consumers and as well as businesses. With our hassle free process and uncompromised service quality, we promise to help you at every step of the journey. So, get GST ready through the simplified GST Registration Process.