& Services Tax (GST) is an indirect tax, introduced following the passage
of Constitution 122nd Amendment Bill, throughout India to replace
all the existing taxes levied by the central and state governments. It is
directly under the Union Finance Minister. GST is launching from 1st July 2017
will be three kinds of GST:
to be collected by central government
to be collected by state governments for intra-state sales
to be collected by central government for inter-state sales
tax and reduces the number of indirect taxes.
hidden taxes and lowers the cost of doing business.
will come down as double taxation will not be playing a role.
be levied only at the final destination based on VAT principle and not at
help building a transparent and corruption free tax administration.
impact on real estate hiking up the cost of new homes by about 8%.
retail products will see a hike in their prices especially clothing.
taxes or airfare varies from 6%-9%. After GST it will be over 15%, almost
double the present rates.
GST has been one
heck of a hype-cum-trending topic for debate lately. The common man is
wondering what would be its effect on the daily life. Whatever be the cause of
action, its true conclusion could only be drawn after its implementation.