GST In India or Goods and Services Tax is an indirect tax imposed on goods and services to replace the other taxes levied by Central and State government. It is beneficial to both, tax department and the consumers, as it lessens the amount of paperwork and reduction of the tax burden on goods. The simplicity of the tax also ensures easy administration and execution of the tax.
The government wants to keep the prices of the commodities in check and it is working on it. It will be possible after the mutual endeavor of central and state government.
The new structure of GST In India will bring a wave of relief to the consumers who are facing inflation, as announced by the government. This single tax is expected to reduce prices of essential commodities.
This tax pattern of the government is specially configured to relieve the common man from the burden of inflation. So, it became crucial to educate the masses about the new structure to make them benefit from the new government scheme. A government committee comprising of central and state officials has been planned to act on complaints of profiteering by industry after the introduction of new GST In India rules.
The Central Board of Excise and Customs proposed that some goods should be exempted from GST like salt, Jaggery, egg, fresh vegetables, honey, refined flour etc. He added that Health and Education services should also be readily available so must be free from GST In India.
The other items put under 12 percent slab are butter, ghee, cashew, agar bat tie, Umbrella, Fruit Juice, sausages, and mobiles while those placed under 5 percent bracket include Edible Oil, Coffee beans, milk powder, kerosene, domestic LPG, brooms and packed paneer.
It is suggested in the new scheme that only 19% items will have GST above 18% and these include custard powder, perfume, shampoo, motorcycle, chewing gum, cement, makeup items and consumer durables which are placed under 28% slab.
Some imports have been provided an exemption from Integrated GST like goods imported for Bhutan and Nepal and trophies for sports events to be reimported would be free from any IGST. The goods worth Rs 1000 imported via parcels or passenger baggage are exempted from IGST.
How is GST Going to Affect Entrepreneurs?
The new tax structure is soon approaching its purpose but most professionals are either not aware of its effects or they need more time to prepare for it. All e-Commerce businesses, whether big or small, required to be registered under the new tax regime to get ready for the new arrival. All entrepreneurs will have to work for making their business run smoothly under the new guidelines of GST In India.
Worst Effect of GST on Gold
If you are crazy about gold then there might be something which will disappoint you. The GST Council has planned to levy 3% GST on gold which will not only make gold costlier but might boost illegal trade of gold.
The scheme seems sound from the consumer perspective but there are several impediments on the way of its successful implementation. Due to inflation, the common man is struggling hard to make both ends meet and in this stressful scenario, the government planning could provide a succor if executed properly. On the other hand, some small businesses and few industrial sectors might face challenges to make their trade compatible with the roll-out.