India moved another step closer to making its biggest reform initiative a success, when the Lok Sabha, after a 7-hour long session, said yes to the four key supplementary GST (Goods and Services Tax) bills. Hailing the decision and congratulating everyone, Prime Minister Narendra Modi called it ‘New Year, New Law, New Bharat’. The proposed date for implementation of the GST Bill is July 1, 2017. Calling it a revolutionary bill, Finance Minister Arun Jaitley led the charge in Lok Sabha.
So, what is GST?
GST is an indirect taxation where most of the existing different taxes will be merged into one, to leave away the multiple taxation system. The GST Bill will allow the central and state governments to levy indirect taxes on services and goods across the country.
With the GST coming in, taxes like Sales Tax, Excise and state-level taxes like VAT, Luxury Tax and Entertainment Tax will be included in this. However, the biggest challenge lies in the coordination between the states and the centre to ensure uniform tax rates. The GST Council has approved four uniform tax slabs – 5%, 12%, 18% and 28%.
Still wondering? This video might help you understand everything about GST Bill –
Now, let’s talk about how it will affect YOU! Here’s what could get cheaper after the GST is implemented –
- Movie tickets
- Electronic items like fans, coolers, mobiles, LED TVs etc
- Readymade clothes
- FMCG products like chocolates, shampoos, processed foods
- Two-wheelers, SUVs
- Cement and paint
- Solar panels
Things could get expensive –
- Mobile bills
- Cab services, air travel and railway travel
- Cable TV
- Courier service
- Hotel and restaurant bills
- Aerated drinks
- Online shopping
While the government negated the amendments, they ensured that the bills -, Integrated GST Bill, Compensation GST Bill, Union Territory GST Bill 2017 and Central Goods and Services Tax (CGST) Bill – get cleared as it is.