Gst growth and how it will help the common man
Answers
It has been more than 40 days since GST has been implemented in India. While the industry was very apprehensive, the GST transition has been smooth. The big question is how GST will impact a common man’s budget.
GST is stated to be one of the biggest tax reforms in India, which would not only impact the businesses but also the common man.
The primary impact to be felt by the consumers would change in prices of goods and services on account of GST rates.
In terms of impact in prices, while services would mostly be more expensive in the initial phases, impact on prices of goods could be a mixed bag. In the long run, once the benefits of GST are expected to kick in in terms of higher input credits and reduction in cascading effect, it is anticipated that the inflationary effect will come down and prices, in general, would come down and stabilize.
In services, the tax rate has increased from 15% to 18%. The 3% increase could potentially mean an increase in the price of services by 3% for the common man, in the short run.
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