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  • Category: Miscellaneous

    With new GST regime house holds would become happy as things gets cheaper

    The Central government is all set to introduce the new tax regime called GST and through which most of the commonly used items would get cheaper as there would be no taxes on them. For the first time there wont be any taxes on Milk, toothpaste, hair oils, soaps, cereals , edible oils, processed food items, Curd, panner , Maida , Basen and atta. All these items are used daily by the poor and the middle class and surely they are going to make savings as there wont be any taxes. However consumer durable, perfumes , shampoo, fire works, hair dye would have 28 percent taxes. Any comment ?
  • #598793
    Although some items will definitely become cheaper after introduction of GST, we must remember that telephone bills, insurance and banking services, business-class air travel and sale of newspaper space for advertisement will become costlier in the upcoming GST regime w.e.f. 1st July, 2017. However, education and healthcare will continue to be exempt from tax under the new tax regime.
    Caution: Explosive. Handle with care.

  • #598837
    And bad news for the ladies as their make up items and make up kits would be costly and that deliberately done to weed out foreign brands from India.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #598844
    It is good tax on many common items generally we use like food grains, agricultural products etc., will be reduced or made zero. With this move many items we use for household will become cheaper. A common man will definitely feel happy. Many of the families can save money because of this reduction. However there is an increase on some consumer products and other items. But totally if we see definitely there will be some saving for a middle class family and it is most welcome.
    I feel GST is a good proposal. I hope it will be implemented successfully.

    drrao
    always confident

  • #598858
    The basic idea behind GST regime is rationalization of tax structure, reduce multiplicity of taxes to single tax system and reduction in tax evasion.

    It is a good thing that in doing so the Govt has cut down taxes on some household common items. As there is increase of taxes in some services and insurance items the net effect on monthly expenditures of General public may be insignificant.

    The GST will also help Govt to come straight under world trade practices also and will facilitate more clarity in import export areas.

    So the common man may not be affected much but there will be ease of business in the country.

    Knowledge is power.

  • #598861
    It is just a misconception that things (household or otherwise) are going to get cheaper. By the introduction of GST, things are going to be dearer (stress laid on dearer).

    The introduction of new rates is not going to change the rules of the game - Business. The thing which is going to change the scenario is power accorded to the law enforcement agencies. The rules & penalties for misconduct (read it as tax invasion) are so stringent that every businessman will have no choice but to go for proper invoicing & will have to pay proper tax. The businessman will try to pass on the burden to the consumer, and the consumer, who has been enjoying the benefits of tax evasion due to competition till now, will have to bear the burden.

    Moreover, the expenses involved in maintaining a GST account are going to be definitely more than what a businessman has been paying till now. Hence, a businessman will have to increase his selling price to factor in the increased cost/expense definitely .

    With the introduction of GST, we are trying to emulate what US & the other European countries did to increase their tax collection. The days are not far behind when kids in India will have to pay an equivalent of $5 for a hamburger (around Rs 300).

    Is that justified in a country like India where 75% of the population or whatever lives below poverty line, I wonder?!

    Conclusion or moral of the story - one should not just believe in whatever comes one's way. He/she should apply his own mind.

    Amin!

    When you talk, you are only repeating what you already know. But if you listen, you may learn something new!

  • #598880
    To day in eenadu I have seen the news that a middle class family can save upto Rs.500/- per month, because of the change in the tax policy and taxes. The newspaper has given a full table with what is the present tax rate and what will be tax rate after GST implementation and what will be the difference. It is working out to be around Rs.499/-. A good news to all middle class and poor families.
    drrao
    always confident

  • #598885
    I am not that positive, because of experience till now.
    When the international oil prices came down more than half it was, price of petrol, diesel in our country did not decline. Many times it increased only. Quoting that the taxi, auto and even railway fares were increased and never reduced by even a single rupee.

    It is doubtful whether the manufacturers and vendors ill pas on the real reduction in tax(if t all) to the final consumer. It is to be noted that the manufacturers and vendors all recover the tax paid by them, from their sale. So ultimately it is only the final consumer who had to bear all these taxes. It is also to be noted that it is gods and services tax. So let us get prepared for tax in each and every services.

    What I learn from the reports coming is that telecom, internet etc will be taxed more and hence will cost more.
    If the states do not get compensation as expected from the central government, then they will impose extra cess or find some other method for enhancing tax.

    There will be an initial illusory price drop. We will gradually find that it is the big corp orates and big business who are actually going to gain, and not the user customer. The profits of corporates will increase.

  • #598888
    We need not jump to conclusions so early. Theoretically it seems that it may happen. But we need to know if it actually happens. Sometimes these decisions act as illusions only. Only the time will tell us how effective this decision proves on implementation.
    _______________

    "Semper Sursum"

  • #598902
    This government has proved that by shifting pricing policy to the oil companies, we are sometimes getting benefited with less price. Like wise GST has to be believed.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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