New Delhi: Even though the historic Goods and Services Tax (GST) bill was passed unanimously in the monsoon session of the Parliament on Wednesday, many citizens are concerned about the immediate implications which this contentious bill will entail — after all, a uniform tax is a matter of consternation.
Finance Minister Arun Jaitley on Thursday said in a press conference that the GST bill was passed with unanimity, and added that “marathon round of consultation over the bill” had taken place. With the main opposition of the GST bill, the Congress Party, giving its assent to the uniform tax rate, it is only imminent that the economical implications will soon ensue.
Things that will become cheaper after GST bill:
Groceries: Market experts don’t expect the changes to come overnight. But with the long term application of the bill, it is expected that the soaring prices of groceries will be checked. The price of lentils, which has been soaring for the past few months, has been the forefront of financial policy criticism the government is currently facing.
Processed food: Packaged foods will become cheaper in the long run. Buying sodas, chips, biscuits, will all eventually see a drop in the rate of taxes.
Two wheelers, small cars, car batteries, etc: Motorcycles and smaller vehicles will become cheaper in time; accessories such as car and motorcycle batteries will also become cheaper.
Movie tickets: Going to the cinemas will become cheaper.
Building material: Materials associated with construction of houses — such as cements, bricks, sands will all become cheaper with the imposition of the GST bill.
Consumer electronics: Essential electronic products such as coolers, lights, fans and water geysers will become cheaper for the consumer to purchase.
Things that will become more expensive after the GST bill:
Restaurants: GST increases the rate of taxes mainly on services, and restaurant is the first sector where the change will be implemented. Going to restaurants will become a more expensive experience for the consumer.
Cigarettes and tobaccos: Daily consumers of cigarettes and tobacco products will be shelling out more money.
Branded clothes: Purchasing branded clothes from the mall will become more expensive.
Air tickets: Travelling by air will become more expensive as compared to travelling by train or commuting by bus.
Mobile phones: Purchasing smartphones will become more expensive for customers.
Insurance premiums: The fixed amount of insurance premiums will be increased by the purveyors of insurance sellers after the imposition of the GST bill.
The bill, which is being deemed as the significant highlight of the Narendra Modi government, will have to be passed by at least half of the 29 Indian states under similar impositions.
The introduction of Goods and Services Tax (GST) would be a significant step in the reform of indirect taxation in India. Amalgamating several Central and State taxes into a single tax would mitigate cascading or double taxation, facilitating a common national market. The simplicity of the tax should lead to easier administration and enforcement, according to the Wikipedia.For all the latest Business News, download NewsX App