Essay on impact of gst on people
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What is the Impact of GST on Cars/Automobiles?
Four wheeler vehicle is somewhat a milestone for every person in their life as it gives easy of transportation but mostly prestige. Cars are considered as luxury goods under GST. Therefore cars fall under 28% slab of GST. Apart from daily private transportation, there will be a problem for the farmers whose daily work depends on the tractor vehicles. After GST there will be a hike from 6-7% to 12% in tractors. Not only that but the hike in insurance and loans for cars is to be expected as well. Hybrid cars will be taxed 28% whereas the tax on Electric cars will remain at 12%.
What is the Impact of GST on Real Estate?
Real estate will get costlier, but buyers will be happy to pay more because instead of paying numerous taxes like VAT tax, service tax, Cess tax, etc. They have one direct tax GST which gives clear knowledge of the amount they are paying to the developer. GST on real estates will extend up to 12% that is 6.5% more than the current tax. Developers have to face the burden of paying the tax of the unsold flats which then can be recovered quickly, but this might be bad for buyers as developers may increase their costs of the property.
What is the Impact of GST on Electronics like Mobile Phones and Laptops?
A mobile phone is a necessity for each nowadays. Electronics are getting cheaper except for mobiles which will get costlier except for imported mobile phones which will be cheaper compared to the mobiles manufactured in INDIA. There is 4-7% rise of tax on mobile phones making them costlier. Same with laptops and desktops they fall under 18% GST slab that’s a 4-5% hike. But all these hikes in cost can be brought down if India starts mass producing laptops and other peripherals.
What is GST? * What is UTGST? * Merits vs Demerits of GST
What is the Impact of GST on Manufacturing Sector?
Suppose a manufacturer buys raw material for 100 Rs where he/she pays tax of 10% that means 10rs goes to the government and when the manufacturer sells the product with added value of 20 Rs making it 100+20 =120rs, government collect tax of 12rs, but the manufacturer has already paid 10rs which makes him liable to pay only 2rs to the government. This transparency of taxation system is likely to enhance economic growth and make corruption free tax system. Goods and services prices are likely to come down if the majority of manufacturing is done in India.
What is the Impact of GST on Logistics?
Logistics plays an integral role in supplying goods from one corner to another its the sole reason for the growth in manufacturing and consumption. Because of GST goods can move freely from one state to another.
What is the impact of GST on Common Man?
The ordinary man can take a big sigh of relief because there will be many opportunities for making significant savings on GST.
Personal care: Products like oil, soap, kajal tissue prices will come down by 6% to 10%.
Hotels: If you are an avid traveler great news for you. Accommodation under 1000rs will be exempted from GST tax, and 18% tax will be levied on above 5000rs accommodation. Taxes on hotels have been reduced from 22% to 18%.
Air Travelling: Economy class fares have been reduced as it only attracts 5% tax of GST.
Branded Goods: Most branded goods that were taxed at 23-25% is reduced to 18% which means more shopping of branded goods at reasonable rates. Yaaay!
Negative Impact of GST in India
Gst is confusing the common man even large scale businesses, they need to rely on advocates and chartered accountants to make them understand What is GST and how it works. Not only that but using computerized process, online registration and return filing is a hassle for those who are barely in touch with technology.
The government has estimated that Indian economy will require at least 2 years to become stable.
Finally, now you can go and debate with your friends and colleagues on GST, all about its effects and impacts quickly. I am pre
Four wheeler vehicle is somewhat a milestone for every person in their life as it gives easy of transportation but mostly prestige. Cars are considered as luxury goods under GST. Therefore cars fall under 28% slab of GST. Apart from daily private transportation, there will be a problem for the farmers whose daily work depends on the tractor vehicles. After GST there will be a hike from 6-7% to 12% in tractors. Not only that but the hike in insurance and loans for cars is to be expected as well. Hybrid cars will be taxed 28% whereas the tax on Electric cars will remain at 12%.
What is the Impact of GST on Real Estate?
Real estate will get costlier, but buyers will be happy to pay more because instead of paying numerous taxes like VAT tax, service tax, Cess tax, etc. They have one direct tax GST which gives clear knowledge of the amount they are paying to the developer. GST on real estates will extend up to 12% that is 6.5% more than the current tax. Developers have to face the burden of paying the tax of the unsold flats which then can be recovered quickly, but this might be bad for buyers as developers may increase their costs of the property.
What is the Impact of GST on Electronics like Mobile Phones and Laptops?
A mobile phone is a necessity for each nowadays. Electronics are getting cheaper except for mobiles which will get costlier except for imported mobile phones which will be cheaper compared to the mobiles manufactured in INDIA. There is 4-7% rise of tax on mobile phones making them costlier. Same with laptops and desktops they fall under 18% GST slab that’s a 4-5% hike. But all these hikes in cost can be brought down if India starts mass producing laptops and other peripherals.
What is GST? * What is UTGST? * Merits vs Demerits of GST
What is the Impact of GST on Manufacturing Sector?
Suppose a manufacturer buys raw material for 100 Rs where he/she pays tax of 10% that means 10rs goes to the government and when the manufacturer sells the product with added value of 20 Rs making it 100+20 =120rs, government collect tax of 12rs, but the manufacturer has already paid 10rs which makes him liable to pay only 2rs to the government. This transparency of taxation system is likely to enhance economic growth and make corruption free tax system. Goods and services prices are likely to come down if the majority of manufacturing is done in India.
What is the Impact of GST on Logistics?
Logistics plays an integral role in supplying goods from one corner to another its the sole reason for the growth in manufacturing and consumption. Because of GST goods can move freely from one state to another.
What is the impact of GST on Common Man?
The ordinary man can take a big sigh of relief because there will be many opportunities for making significant savings on GST.
Personal care: Products like oil, soap, kajal tissue prices will come down by 6% to 10%.
Hotels: If you are an avid traveler great news for you. Accommodation under 1000rs will be exempted from GST tax, and 18% tax will be levied on above 5000rs accommodation. Taxes on hotels have been reduced from 22% to 18%.
Air Travelling: Economy class fares have been reduced as it only attracts 5% tax of GST.
Branded Goods: Most branded goods that were taxed at 23-25% is reduced to 18% which means more shopping of branded goods at reasonable rates. Yaaay!
Negative Impact of GST in India
Gst is confusing the common man even large scale businesses, they need to rely on advocates and chartered accountants to make them understand What is GST and how it works. Not only that but using computerized process, online registration and return filing is a hassle for those who are barely in touch with technology.
The government has estimated that Indian economy will require at least 2 years to become stable.
Finally, now you can go and debate with your friends and colleagues on GST, all about its effects and impacts quickly. I am pre
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