what is GST?
Goods and Service Tax (GST) is an indirect tax which the Government of India replaced multiple cascading taxes levied by the Central and State Government on variances goods and services.
what will it do?
- The GST taxation laws will put an end to multiple taxes like excise, CST, VAT, service tax which are levied on different products, starting from the source of manufacturing, till reaching the end consumer.
- The GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses.
— Sudarsan Pattnaik (@sudarsansand) July 1, 2017
In the making since 2000, the Goods and Service Tax (GST) comes into effect from July 1, 2017.
In these 17 long years, GST has undergone several conceptual changes to finally emerge as a multi-rate tax structure, which economists believe will undermine the advantages that a simple-structured, uniform indirect tax would have affected.
Food grains, cereals and vegetables have been zero rated under GST, other rate slabs are 5%, 12%, 18% and 28%. A cess will also be added to certain sin and luxury products.
Here is a look at tax rates and how it might impact you:
Tax burden goes up for the below products :
GST price goes for up for the below products:
GST is exempted for the below products:
- Cereal grains tax reduced from 5% to 0%.
- Plamyra jaggery from 18% to 0%.
- Bones and cores, bone grist, bone meal, etc., hoof meal, horn meal, etc. from 5% to 0%.
- Salt, all types from 5% to 0%.
- Kajal from 5% to 0%.
- Children’s picture, drawing or coloring books from 12% to nil.
- Human hair, dressed, thinned, bleached or otherwise worked from 28% to 0%.
- Muddhas made of sarkanda and phool bhari jhadoo from 5% to 0%.
- Coloring books revised from 12% to 0%.
Thats it guys we will discuss more in detail about GST in the next upcoming posts.