Finally GST (Goods and Services Tax) bill has been passed in Rajya Sabha (INDIA)
But it only be effective and useful for Indian Citizens only if they finalized moderate GST tax implementation like in Malaysia its 6%, Japan 8%, Australia 10%. We have been hearing through all the modes like it going to be 18% but in such a case our mobile bill, electricity would be costlier and eating in restaurant or buying goods won’t affect much. So in general terms it would be less by Rs. 5-7 only after GST tax implemented next year by April 2017. Experts believe most amenities to become costlier in the stopgap.
Still this is the big revolution in Indian Government History. But does we all general public of India knows about GST. Let me brief on this, in simple terms it’s one tax over all the taxes we have been beard with from past so many years like VAT, Service Tax etc. After GST implementation, still we have to give service charge on most of the goods. Anyways it’s never been too late to introduce GST in India though it has been implemented in most of the countries way back in 70’s 80’s.
After introduction of GST rate with new system, it will be determine the path where prices would move finally. It will further revise the tax management by swapping layers of local imposes with a single tax as already been mentioned, and combine together a public countrywide marketplace.
Long time to go, as far implementation of GST to be happens, it might be fully operated all over India by next year, might be from April 2017. There is further discussion to be held for how to implement it, rate of GST tax percentage finalization in Lok Sabha today itself. Let see what rate they stamped on to be finalized. “The monetarist control of GST on the Indian citizens, mainly common man largely depends on the final GST rate. The services used by the common man are likely to prove expensive under the GST command, principally due to a higher GST rate on the supply of services, when it will be finally implemented.
Its been assumed as far as primary services such as healthcare and education concern, it should continue to be released under GST and even low percentage on Insurance. We are still not sure about the impact of GST on prices and still unknown but as far as other countries such as Australia, the first years after GST implementation caused them higher inflation. This is highly point to be consider and need to be discussed before implementing GST in India. Obviously when there is Positive of anything Negative also attracts with it. Govt has to make sure consequences of GST stays on a smaller scale so that burden of negativity like inflation stays under control.
As assumed, most of the Goods and services in Indian Economy are taxed at the Standard GST rate of 18%, as suggested by most of the GST committee, GST would result in a drop of taxes paid for Goods (currently taxed at 24% to 26%) but there will be rise in taxes paid for services (currently tax at 15%). Telecom industry has already asked the Govt. to illuminate its situation of taxes on value added services (VAS). By the wider agenda of GST, it is expected that even under the planned GST rule, telecom service providers may face substantial tasks. Though for the very first time, both the center and state governments will have control to tax services. Current proposed GST law should support the government’s initiative of ease of doing business, only if they offer a simplified tax rule.
We would be helped only if GST tax implemented in between 5 – 10% and we are the ones who can really make our Govt think for us else…. Nothing can be change for Good.
To make better use of GST implementation, effective from April 2017 lets share this information as much you can by liking and sharing, Numerous of hits can reach our government by the end and for the betterment of Indian Citizens they have to take the final decision in rights towards general public.