Well, you all must have come across this initialism, GST(Goods and Services Tax) which is going to come into force all across India from July 1, 2017. it’s For those who don’t know it’s a common tax going to resolve the taxes levied by Central and State Governments. Thus, it will result in One Country One Tax.
Yes, guys, it took a long time to pass this bill, but we are all going to benefit from this now, don’t you think? It is introduced as The Constitution Act,2016. If you are a citizen of India, you must be interested to know about the goods and services upon which taxes are not going to change.
What Is GST Bill Actually:-
GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is a single tax for the supply of goods and services, starting from the manufacturer to the consumer. The Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Still Didn’t Understand? – Let me just give an example In Odisha If someone wants to buy a car the tax or Insurance he or she has to pay is 15 % and for the same car in some another state let’s say Jharkhand They have to pay only 5% interest rate for the same Car just because these states have different interest rates. But after the GST bill will be passed every Car throughout the country will have the same Price.(Though The price of the car can now vary depending upon the GST rates, The point is that now the same car will be priced same for every state in the country )
Now Got It… Thank me Later
Which indirect taxes will subsume into GST?
At the Central level: (i) Central Excise Duty, (ii) Additional Excise Duty, (iii) Service Tax, (iv) Additional Customs Duty (also known as Countervailing Duty) (v) Special Additional Duty of Customs.
At the State level: (i) State Value Added Tax (VAT) or Sales Tax, (ii) Octroi and Entry tax, (iii) Purchase Tax, (iii) Luxury tax, and (iv) Taxes on lottery, betting and gambling (v) Entertainment Tax (other than the tax levied by the local bodies) (vi) Central Sales Tax (levied by the Centre and collected by the States).
Also Do Check Out How the Word Politics has Lost its Meaning
Now There are several items Which some will come under GST and some are not :-
Items not under GST
1. Alcohol does not fall under GST as Sales Tax presently levied on it accounts for 33% of states revenues and they don’t want to share it with the Centre. So not only BJP, but the State Governments too wanted to exclude it.
2. Petroleum products such as petrol, diesel, natural gas etc.(you must be happy now!) also do not fall under this bill. This may be due to the fact the Centre earns import duties and Excise duties on the production of petroleum from crude. This may become a part of this bill later on(i.e. after 2-3 years).
Girls give a high five! Even Kajal is going to be cheaper. Coming to the services, the following are not a part of GST:
- Sale of land or sale of building being works contract is not a part.
- Services of a funeral, burial, crematorium or mortuary including transportation of the deceased is not under this bill.
- Services of an employee to his employer with respect to his employment.
- Electricity does not come under GST
Now It is very important on to know about the benefits that we are going to get, isn’t it? Let me highlight those.
- We will have a common market
- Revenue will get a boost
- Life will be simpler as cinema tickets, dining in restaurants, electrical appliances, stoves, SUVs will be cheaper.(Hurray!)
- Less developed states will get a lift
- Investment will get a boost
- Online simpler procedure under GST
- Bring forth transparency and corruption-free tax administration
- Remove tax levied level by level.i.e.cascading tax effect
- Make In India will get a boost
- GDP lift
Cool, isn’t it? Hope that this will clear your doubts regarding the items that come under or does not come under GST.
If you are interested in social causes do check out Refugee, Migrant, Asylum Seeker-Are they same? and more such interesting topics.
How Was The Article Guys- Comment Below and Do let me know