GST and its impact on YOU!

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Another thing that is important to look at and is at the crux of this bill is that the states get tax based on consumption and not manufacturing. So, in essence it does become a little fairer, IMO. States like Gujarat and Maharashtra had become quite rich because they have a lot of industries. And other states where people used the products manufactured in aforementioned states didn't get much money despite it's people spending the money.
And yes, the GST won't be the same for everything and it shouldn't be either. Their will be different slabs for different kind of commodities. What it should be and most probably will be ,if the states can agree, is that GST will be same across the country for a specific product.
 
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this website is giving some info about GST

http://www.gstindia.com/what-is-gst-and-how-it-will-affect-you/
http://www.gstindia.com/basics-of-gst-implementation-in-india/
http://www.gstindia.com/a-hand-book-for-gst-in-india-e-book/
http://www.gstindia.com/goods-and-service-tax-a-detailed-explanation-with-examples-2/
http://www.gstindia.com/gst-rollout-to-boost-make-in-india-and-create-more-jobs-say-experts/
http://www.gstindiaonline.com/

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GST objectives:-

1. Ensuring availability of input credit across the value chain

2. Minimising cascading effect of taxation

3. Simplification of tax administration and compliance

4. Harmonisation of tax base, laws, and administration procedures across the country

5. Minimising tax rate slabs to avoid classification issues

6. Prevention of unhealthy competition among states

7. Increasing the tax base and raising compliance
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GST has been envisaged as a more efficient tax system, neutral in its application and distributionally attractive. The advantages of GST are:

  • Wider tax base, necessary for lowering the tax rates and eliminating classification disputes
  • Elimination of multiplicity of taxes and their cascading effects
  • Rationalization of tax structure and simplification of compliance procedures
  • Harmonization of center and State tax administrations, which would reduce duplication and compliance costs
  • Automation of compliance procedures to reduce errors and increase efficiency
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Destination principle

The GST structure would follow the destination principle. Accordingly, imports would be subject to GST, while exports would be zero-rated. In the case of inter-State transactions within India, the State tax would apply in the State of destination as opposed to that of origin.
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Taxes to be subsumed

GST would replace most indirect taxes currently in place such as:

Central Taxes
  • Central Excise Duty [including additional excise duties, excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955]
  • Service tax
  • Additional Customs Duty (CVD)
  • Special Additional Duty of Customs (SAD)
  • Central Sales Tax ( levied by the Centre and collected by the States)
  • Central surcharges and cesses ( relating to supply of goods and services)
State Taxes
  • Value Added Tax
  • Octroi and Entry Tax
  • Purchase Tax
  • Luxury Tax
  • Taxes on lottery, betting & gambling
  • State cesses and surcharges
  • Entertainment tax (other than the tax levied by the local bodies)
  • Central Sales Tax ( levied by the Centre and collected by the States)
 
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@swatkats not sure why you tagged me as I rarely participate in such discussions (for lack of knowledge more than anything else).

Having said that, I've come to accept that 'Two steps forward, one and a half steps backward' is how it's always going to be in India. GST is certainly no pie in the sky as other members have right said but there is no denying it will make things a lot less confusing. Our tax structure is despised for its complexity and together with the inefficient bureaucracy and infrastructure, is the biggest hurdle to entrepreneurship. No wonder the unorganized sector pervades so much of our economy. Of course, we can only hope this exemptions list doesn't see new entrants all the time as that would render GST moot.

Everyone give this article a read. Provides a very balance view in keeping with its title.
 
swatkats said:
Been tracking this GST thing, I was expecting this percentage around 16% but looks like its 18%

Corporates are all excited be it any sector, As it will simplify the tax structure.

But.. Whats in there for YOU and ME?
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Exactly

-Service tax hiked from 15% to 18%
-CST on ecommerce 5.5% could be hiked to 18%?
-VAT is anyway 14.5% which will be 18%.

I agree with the idea of GST but percentage should have been definitely 15 or 16% max.

Correct me if I'm wrong but i don't see any use for me, Except for the fact that corporates will enjoy less taxes and there is Zero hope that they'll pass on the benefits to the consumers.
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Initially prices will rise as state govts are worried they will face a shortfall.

The effects of the benefits GST will not become apparent for some time to come, and i mean years. we have only crossed the first hurdle, the implementation is going to be a long dran out affair. This does not mean its a failure, so allow for sufficient time before making judgements.

Not covered under the GST purview:

1. Petroleum products

2. Entertainment and amusement tax levie
d and collected by panchayat /municipality/district council

3. Tax on alcohol/liquor consumption.

4. Stamp duty, customs duty

5. Tax on consumption and sale of electricity
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And that right there is the problem. You CANNOT have exemptions to GST and expect to get the full benefits of GST. In countries where GST is in force none of these exemptions exist. Everything is subsumed under GST.

fuel can have a direct impact on end costs all along the chain, whatever savings gst provides end up being cancelled by fuel.
 
6pack said:
http://economictimes.indiatimes.com...-will-gst-be-for-you/articleshow/55239812.cms

Lol. Here I was stupidly thinking rates would come down. Just looking at that table looks like rates will increase for almost everything marginally.
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Haha. The products/goods that are taxed higher than the GST rate today are either exempted from GST (e.g. petroleum products) or categorized under luxury items to keep the high taxes. You really thought the Government cares about the common tax payer ? All they care is increasing their revenue, doesn't matter which party is in power.
 
GST implementation starts.
15% tax when i buy software service from abroad.
GST IMPLEMENTATION 1.jpg
 
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Was going through the tax slabs in the GST , unlike what the ignorant media and many news papers said that Air conditioners and other appliances ,electronics etc will be cheaper.The truth is everthing is going to cost more now. Just have a look in the pdf link below. All bills will be more, if you buying anything in a retail store like croma or for that matter computer parts,tools etc in SP road it will cost a lot more now.
http://www.cbec.gov.in/resources//htdocs-cbec/gst/chapter-wise-rate-wise-gst-schedule-18.05.2017.pdf

This is going to cause further inflation.
 
adder said:
.. ignorant media ..
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Not really.
They are just hiding the facts. Or to be more precise, they are lying to people.
Exactly what the masters are telling them to do.

'GST effect' is a secondary issue for me.
The real worry is 'GST Network' and the way our govt has set it up.
 
adder said:
Was going through the tax slabs in the GST , unlike what the ignorant media and many news papers said that Air conditioners and other appliances ,electronics etc will be cheaper.The truth is everthing is going to cost more now. Just have a look in the pdf link below. All bills will be more, if you buying anything in a retail store like croma or for that matter computer parts,tools etc in SP road it will cost a lot more now.
http://www.cbec.gov.in/resources//htdocs-cbec/gst/chapter-wise-rate-wise-gst-schedule-18.05.2017.pdf

This is going to cause further inflation.
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There is one thing that is not going to increase .... wages !!!
 
I mean what were you guys expecting really? Like a wise and soft-spoken man once said, this is legalised loot and plunder. But I don't wanna get into the same hyperbole our govt is renowned for. Let's just look at simple facts. Right from the start they've been doing a tax-attack, exploiting india's biggest asset, which is the huge population. Increased service tax from 12.36% to 14%. Then added the totally fake KKC and SBC at 0.5% and 0.5% bringing the total to 15%. Now another 3% increase seems right on. Acche din (for them).
 
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cellar_door said:
Dont worry guys. All the money this tax will collect will be used to improve the infrastructure the life of average people.

Wait. No its the other one. Line up the pockets of our corrupt politicians.
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LOL for a moment I thought you were serious.

Julian said:
I mean what were you guys expecting really? Like a wise and soft-spoken man once said, this is legalised loot and plunder. But I don't wanna get into the same hyperbole our govt is renowned for. Let's just look at simple facts. Right from the start they've been doing a tax-attack, exploiting india's biggest asset, which is the huge population. Increased service tax from 12.36% to 14%. Then added the totally fake KKC and SBC at 0.5% and 0.5% bringing the total to 15%. Now another 3% increase seems right on. Acche din (for them).
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What options do we have? Congress is like a headless chicken and AAP is loosing any credibility it had fast (I mean really fast).

A strong opposition is the need of the day but who will stand out?
 
I think we already have a thread on GST and how things came to where they are now. Federalism was a roadblock and neither the state nor center was ready to cede ground leaving us with hybrid GST - CGST, SGST and IGST. Find all answers here:
https://cleartax.in/s/what-is-sgst-cgst-igst

And while we talk about the government let's even touch upon how the manufacturer's actually pass on the benefit of lowered tax to the consumers.....or do they?
 
prabs said:
What options do we have? Congress is like a headless chicken and AAP is loosing any credibility it had fast (I mean really fast).

A strong opposition is the need of the day but who will stand out?
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That's the whole problem and don't the BJP know it. They can do pretty much anything and no one can or will do anything about it. I feel the AAP was asking some of the right questions, but when an intelligent, good question is asked by a bunch of retards, the question itself loses all value and credibility. Sad indeed.

abhi1984 said:
I think we already have a thread on GST and how things came to where they are now. Federalism was a roadblock and neither the state nor center was ready to cede ground leaving us with hybrid GST - CGST, SGST and IGST. Find all answers here:
https://cleartax.in/s/what-is-sgst-cgst-igst

And while we talk about the government let's even touch upon how the manufacturer's actually pass on the benefit of lowered tax to the consumers.....or do they?
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Whatever additional taxes will be passed on to the consumer, whatever savings will be kept by them ;)

About your first point, i seriously don't understand the concept of a unified tax when, there are multiple slabs, things that don't fall into even these slabs are given 'exemptions' and then various bodies are free to muck around with the rates even more. I don't see anything really being reformed or improved in the long run. Just a whole bunch of additional hoops to jump through and more net tax paid by the common man.
 
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Agree. The entire chain is going to have to be GST compliant, which means computerization of invoices and tax forms. And it's going to be a single tax(called GST) instead of various taxes. It's simplified.
 
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