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  • Category: Miscellaneous

    Are you still confused about GST? Is it good or not?

    I have seen so many people who are still confused about GST. Some of them are linking it with Income Tax. Some are saying its Direct Tax. Some people are calling their Chartered Accountants and asking them for help they are so worried about GST. As our Prime Minister had said its a Good and Simple tax there is no need to worry about it. It will help our country to grow as foreign investors will take interest in our country. The tax is charged on MRP instead of Selling Price. Now, the manufacturers will try to reduce their MRP rate to reduce the burden of tax it is going to help us in the long run. Its my experience so far about GST what's your?
  • #603190
    I welcome this GST(Goods and Services Tax) system. I had been paying Rs. 900+ per month as my Broad Band bill to BSNL. But, in this month, I have been billed only Rs. 770/-. I think it is the GST effect. More to see and know the good and bad effects of GST on me. I am happy.
    No life without Sun ¤

  • #603192
    Whenever there is a change of tax regime it takes time for settling the things as there are new tax rates for different categories of items and the shopkeeper, retailer and wholesaler will take time in understanding what items they have to sell in increased price and what items they have to sell in decreased rates.

    Presently due to the transition period there is utter confusion and these clouds will be going away after substantial time only. As Govt has given concessional rates of GST for many items as well as categories the overall picture is very bright and economy is poised to grow.

    For example the restaurants having turnover of less than Rs 50 lac in a year, have to pay only 5% GST. Likewise many other categories will be benefitted.

    So we should be patient and should not conclude a negative note so early. In fact GST is going to make ease of business in near future. Whatever propoganda or rumours are being spread in the market about GST are either the miscreants or the tax evaders.

    Knowledge is power.

  • #603202
    Because of GST bathing soaps price were reduced marginally but most of the goods were sold at the same price or a little high price because previously 15% tax collected on goods were shifted to 18% range. Our Finance minister Mr. Jaitley and GST officials already announced people may not see a drastic reduction or increase of the cost of the goods as most of the taxes were adjusted to the same level so that people may not find any hardship but the goods with 15% tax may show a little higher as their taxes were shift ed to 18%. After GST 25Kg. Rice bag changed from Rs.1150 to Rs.1350 in our city. But it is due to GST or anything I don't know.

  • #603203
    Some food items are cheaper than before while some are costlier now. And yes there is difference as some states were charging higher tax earlier while others were charging lower tax in the form of VAT etc... But now there is same rate of tax throughout the country so for many people prices are higher than before while for other it has reduced. There is slight change in price but it will help in the long run.

  • #603210
    GST is good for government as more tax will come to government. But it is 'fansi ka fanda' for customers and traders. customers has to pay 18% service tax in place 15%. Traders has to file 36 times GST return in a year. They have to purchase computers, software, internet and one operater. It will increase their cost and they will not be able to evade the tax.
    The greatest wealth in this world is mental peace and good health.

  • #603219
    So far I could not find any formidable gain as a common man as assured by our PM. The essentials, the Kirana items prices are the same. The vegetables and fruits prices has increased. Rice is sold at 45 per kg and so far 14 days has passed. Dall and groceries which are daily requirement has not come down. When asked the Kirana store owner says that as long as they have the old stock, they would sell at old price only. This has been done by every shop keeper. So the impact of low price is yet to reach the common man and that will continue further. So there is no remarkable gain through GST so far.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #603232
    I think it will take time as the sellers are also still confused. Even the big outlets or chain stores are closed for weeks.

  • #603318
    Still no clear idea has come to the public about this GST. Even shop keepers also not very sure. But in general the overall effect may not be that much on either side. Some financials experts say that, the society will get benefitted by this system. We have to wait some more time to have a clear idea.
    But in the name of GST some vendors in Hyderabad are trying to sell some items at a higher rate. People who have some idea about this system are protesting and innocent are purchasing at the rate decided by the vendor.
    A note book costing Rs.10/- before GST implementation is being sold at Rs.15/- by a book sellers. Then local people asked them to show the proof, he has given at the old rate.
    This type of incidents are creating some unnecessary problem.

    drrao
    always confident

  • #603433
    As people were somewhat scared of demonetization and its effect, now traders and people are also somewhat worried. The good thing takes time and so GST will too. You have to support every decision of government because it is you who have elected them.
    Paresh B. Gujarati

  • #603533
    I think GST is a good thing, but has been badly implemented.

    We have been born & brought up in a society which never bothered to pay Sales tax or VAT. Now, all of a sudden, a consumer will have to pay 28% GST on certain products, since GST evasion at a large scale will not be possible due to strict penalties.

    Imagine a situation where one used to buy a product for INR 1000 without bothering to pay any Sales tax or VAT on the purchase. Now he will have to pay 1000 + 280 (GST @ 28% of 1000) = 1280. How many will be ready to buy a product for Rs 1280 instead of the earlier price of 1000? Your guess is as good as mine.

    Someone may counter that earlier there were other taxes like excise etc for which a trader could not get input credit and now he will get input credit and hence goods would become cheaper. The situation was very different earlier. Goods were dispatched from factories without paying excise and VAT. Goods crossed many states' borders to reach a consumer without paying excise, VAT, octroi..... Even the consumer never bothered about a bill. So, how does the question of taking input credit arise when it was never paid in the first place? I fail to understand that.

    I think the tax evasion will continue, though on a smaller scale than earlier. The basic issue is the five slabs of GST - 0, 5, 12, 18 & 28. The higher rates of 18 & 28% will encourage people to evade GST.

    My view is that Modi, Jaitely, state finance ministers made a big mess of GST. There should have been only one rate of GST and that should have been something around 6% exempting some products. A lower tax rate of 6% would have encouraged everybody to pay GST. People would not have minded it. They would have got habituated to paying GST and next year the GST could have been increased to say 8%, and then to 10%.

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


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