GST (GOODS & SERVICES TAX) IN INDIA
GST bill has been a great step taken by our Prime Minister Mr. Narendra Modi which would be inclined to reduce the overall tax burden on goods from the consumers’ point of view. It would amalgamate the central tax and state tax into a single tax. Currently the consumers are paying 25%-30% additional tax. But with the implementation of GST the consumers have to pay the maximum tax up to 18% only. The GST bill is already passed in Rajya Sabha and would be implemented on April 1, 2017.
This step would provide one single tax for all states. For eg-The entertainment tax charged by every state is different and depends upon the theatre. But with the implementation of GST only one tax would be applicable for all the states which are beneficial for the consumers. In some case the GST is useful as it would reduce Tax like Dinner in Restaurant, buying house, flat, luxury cars, FMCG products, consumer durables, electronic items, etc. This in turn would reduce price of these products. At the same time it has increased tax for some sectors like- jewellery, payment of credit card bills, mobile phones, banking and insurance services, telephone bills, air travel etc.
There are pros and cons to this too but the whole process of management and understanding the taxation system will be made simpler.
MBA- IInd YEAR, 2016