write an essay on the impact of GST
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Costly transportation and communication services: Airlines traveling will be expensive after GST Act, the tax rate for the current airline is 9 percent which will change to 12 percent. Although, GST on economy class traveling is set to 5% from 6%.
Telecom Industry: Reliance Jio being a headache, poaching customers of other telcos by providing services at cheap rate has put large telecom industries in a dilemma, and with the GST Telecom services will be taxed at 18% to previous 15%.
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%.
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.
Hope it helps!
Costly transportation and communication services: Airlines traveling will be expensive after GST Act, the tax rate for the current airline is 9 percent which will change to 12 percent. Although, GST on economy class traveling is set to 5% from 6%.
Telecom Industry: Reliance Jio being a headache, poaching customers of other telcos by providing services at cheap rate has put large telecom industries in a dilemma, and with the GST Telecom services will be taxed at 18% to previous 15%.
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%.
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.
Hope it helps!
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