Party hard, but talk less in the GST era!
The much-talked about GST regime will soon be ushering into the Indian territory! Aren't you inquisitive to know about its repercussion on one of the fastest growing economies of the world? If yes, we hereby discuss the positive as well as negative impacts of GST implementation.
While GST will help you eat easy in restaurant, it will also control your mobiles bills as the services will be expensive under GST era. Also, if you are fed up of paying too many taxes, GST will be extending a helping hand as it will replace VAT, CST, Service Tax, CAD, SAD, Excise, Entry tax, purchase taxes. Also this Goods and Services Tax shall be the biggest indirect tax reform, paving way for a uniform and simplified way of Indirect taxation in India. Now let’s read about its impact, both positive as well as negative:
1 GST will turn India into one market: Converting India into a single market will trigger a positive impact on India’s GDP. The economy will grow and so will the nation!
2. It will bring in a unified tax system: GST will help in removing a bundle of indirect taxes. The tax compliance will be little; the massive taxing effects will be removed and the manufacturing costs will be tumbling down making the consumer goods cheaper. An Aam Aadmi like you and me can think of buying cars and other FMCG while saving some pennies in pocket.
3. Corruption will be killed: With the start of a unified tax regime, corruption rate will be reduced and the ultimate beneficiary will again be a person like you and me!
4. You will be able to make more purchases: If you were dreaming till date to buy a two-wheeler, or an entry-level sedan (except small cars), SUVs and luxury or premium cars, then GST will bring in a good news for you. All these vehicles would witness a reduced rate and hence you can now think of buying them.
White goods such as air conditioners, washing machines, refrigerators, soaps and shampoos etc that were taxed at 30-31% shall be now taxed at 28% which will reduce its price.
5: There will be more entertainment on cards: As the entertainment taxes get subsumed in GST, the movie tickets and theatrical performances will also see cost cuts in most of the states.
6. You shall eat easy in restaurants: GST will be bringing in more party times! For you will be able to eat easy without thinking of big bill. Dining in restaurants will be becoming pocket friendly in most states.
Negative Impact of GST :
1 Be ready to pay for services: You will be paying extra for a few services such as telecom, banking, airline etc under the GST era.
Prices of these essential services are likely to rise. A few of the services which are now being taxed at 15% shall be taxed at a higher rate of GST @ 18%.
2. Essential services may cost more: Different essential services may become expensive under the GST regime. A few such services where the current exemptions are discontinued such as residential rent, health care, school fees, courier services and commuting by metro or rail may become expensive.
3. GST can trigger in a complicated situation: As GST will usher in a new era, people may take a little more time to understand its final implications. Hence, there will be some confusion and complications in the market for some time.
4: It can bring in a rising trend of prices: There are chances that a seller may become greedy and refuse to pass on the benefit to the consumer. He might increase his profit margin and eventually the prices of goods can see a rising trend.
Meanwhile, it’s too quick to decide as to how and when which sectors will be impacted under the GST era. But let’s hope the common man as well as the nation grow together in the long run with this much-hyped reform system!