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  • Category: Government

    How GST will impact common man in great way?


    Wants to know how the GST is helpful for a common man. Here are the features outlined by our experts and have an idea about GST.

    Goods and Service Tax is now successfully passed in both the houses. The implementation of GST will surely affect the common man. I do not know the exact way in which we all will be getting affected by GST implementation. How budget of common man will get changed due to this GST?
  • #141074
    There was a well debated Group Discussion(Active GD) in ISC forum titled: What will be the benefits of GST to the common man? . That GD was when the actual decisions and guidelines on GST implementation were not decided. Hence the GD had the expected logical and estimated opinions of the participant members. Some of them may stand true even now also.

    The GST is now in its pre-implementation stage where the micro parameters have to be discussed and decided by the centre and state governments. The finality has still not reached, though there is decision in many clauses and tariff rates of tax.

    The way things stand at this stage, I see that there may not be much relief and advantage to common man. Common man will be benefitted only if the GST rate on day to day used essentials is kept lower than what the tax component is now on those items. The other indications that there will be cess over and above the GST, which will simply defeat the purpose of GST. The main issue is how the manufacturing states are compensated for the loss they wil suffer on GST implementation. Both states and cetre want more revenue from GST and that tussle will only make the taxes more if not same as the existing rates.

    The benefit will be for the manufacturers and traders, as they all get the set off for what tax they paid ; ultimately'taxing' the end consumer.

    Even though I am not a cynic, my analysis of things till now makes me feel that the common man is not at all going to be benefited by GST. The praise and compliments coming for the government from big jewelers etc prove that it is they and their likes who will be benefited.

  • #141087
    GST is simplification of the taxes on the small business and the larger enterprise. It does not directly have impact on consumer. With the simplified taxes, the government is meant to be making things easier on their own end for the taxes. So all the taxes in future are likely to be clubbed into GST. This way small business can focus more on the business aspect instead of small taxes that they have to pay on every transactions.

    For consumer, this means less tax burden and sellers are going to be pricing the product and services in more simplified way. Also the amount of local taxes that are being charged will be reduced as well. So we have to take that into consideration.

    There is not much impact expected from GST. But you can guess that most of the small business and larger business may hike the prices for their service. So this may push the economy and may increase prices of things around. If this doesn't happen and transition remained smoothly. Then I guess GST turned out to be lot simpler in that case.

  • #141116
    What I presume that in those states where the taxes were already high and they have been charging from their people since many years, they are going to stand benefited as the Center proposes to bring in uniform tax structure irrespective state earnings either plus or minus previously. So this clearly brings in the fact and one has to agree that the proposed GST will immensely benefit people of those states which are in high tax net either too and the states which were charging less tax either too , there the people would be burdened with new tax regime from now onward.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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