Summary: Have you been struggling to grasp information about GST, it seems that you are in the right place at the right time to understand GST better.
It has been 46 odd days that have been gone after GST was brought into effect but even after the passage of 1.5 months there has been a lot of chaos and confusion among the folks in India. In this blog you will come to know about the basics that will govern the GST taxation. Brace yourself for a short informative sojourn that will keep you informed in the best possible manner.
Goods and Service Tax will be imposed on the value of the goods and services that would be produced in the economy. In this model of taxation the tax would be imposed on the value added.
GST will put tremendous amount of pressure on the Balance of Payment since the value of import will rise from US$3.6 Billion to US$6.9 Billion.
The public exchequer will be credited with a huge amount standing pegged at US$12.394 Billion.
As GST will make FDI take a new turn in the Indian economy the exports will rise from US$5.4 Billion to US$10.7 billion.
Financial services will be taxed at 18% from now on which would be 3 above the previous rates. But the sellers and businesses will not have to be unhappy about the same as “Input Tax Credit” will neutralize the impact of the increase of the taxes.
Travelling would be fun when you know that only 5% tax would be imposed on the tickets generated. It could be a happy sign to increase your travel budget by that amount saved.
Soft drinks and flavored water enter elite list with 28% GST.
Television, refrigerators and air conditioners will end up on a costly table with 28% GST imposed. It will be 4-5% above the previous taxation level.
Entertainment tax enters the elite club with 28% GST imposed on movie tickets. You might have to pay a little extra when you check in to a theater near you from now on.
Uniformity would be all pervasive and this would make goods enter the level playing field in the competition. To cut the story short you will not be bound by your location anymore since goods will cost uniformly across the country.