GST And All You Need To Know About It

by | Aug 10, 2017 | Featured, GST | 0 comments

Goods and Services Tax (GST) is the biggest reform in India’s indirect tax structure. The purpose of the bill is to introduce one single tax on supply of goods and services from the manufacturing stage until its delivery to the final consumer. For new businesses and startups- it becomes impossible to navigate through various direct and indirect taxes. Constant changes to taxes like Service Tax are making things even worst. But now, the things are set to change with new Goods and service tax commonly known as GST.
The goods and services tax falls under five categories: 0 percent, 5 percent, 12 percent, 18 percent and 28 percent.

Banksdirect.in has given below a round-up of how the new slabs are going to affect prices of various goods;

  • No tax on foodgrains, milk, curd, meat, fish, chicken, eggs, fresh fruit and vegetables, honey, jaggery, kumkum, bindi, pappad, contraceptives, flour, besan, bread, salt, stamps, judicial papers, printed books, newspapers, bangles and handloom.
  • Household products like Sugar, tea, coffee, edible oil, mithai, pizza bread, condensed milk and frozen vegetables will attract a 5 percent levy. Hair oil, soaps and toothpaste will be charged with a single national sales tax or GST of 18 percent.
  • Medical Items: Ayurvedic and homoeopathy medicines, umbrella, electric vehicles and mobile phone manufacturing will be taxed at 12 percent.
  • Mobile phones may get costlier with the government imposing GST of 12 percent, taking away the benefit under duty differential that was being offered to local manufacturers. Prices of phones that are imported into India are likely to go down, while those made locally may go up. Prices of mobile phones at e-commerce players like Amazon, Flipkart, Snapdeal, Shopclues and others, where sellers of mobile phones have been supplying from low VAT states, primarily Karnataka, may now be higher than earlier.
  • Automobiles will attract 28 percent GST, with luxury vehicles facing an additional cess of 15 percent. Similarly, small petrol cars will face 1 percent, while diesel-powered small cars will attract 3 percent. Bigger cars and luxury vehicles are expected to attract a cess of 15 percent over the base rate of 28 percent. Motorcycles with the engine of more than 350 cc will attract 3 percent and an equal amount of levy will be applying to aircraft for personal use and yachts.

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GST And All You Need To Know About It

Goods and Services Tax (GST) is the biggest reform in India's indirect tax structure. The purpose of the bill is to introduce one single tax on supply of goods and services from the manufacturing stage until its delivery to the final consumer. For new businesses and...