The objectives of implementing GST comprises availability of input credit across the value chain, reducing cascading effect of taxation, simplify tax administration, minimizing tax rate slabs, etc.
·GST have 2 basic elements i.e. central GST and state GST. The indirect tax from central and state level is integrated with GST. Whereas state indirect taxes which going to be integrated with GST are VAT, entertainment tax, luxury tax, taxes on lottery, state cesses, purchase tax. And central indirect taxes are central excise duty, additional excise duty, service tax, additional custom duty, special additional duty of custom, surcharges would integrate with GST.
·According to sources, GST help in increasing the revenue for the states and centre by replacing VAT.
·Due to GST, cascading effects of taxes, sales tax, service tax, and excise duty will be removed.
·The rates for goods and services across the nation would be same.
·Now every taxpayer will pay the single tax as a GST at state as well as central level.
·It prevent the unhealthy competition between states.
·Corruption free tax administration system came into existence due to GST.
·It will help to improve the Indian GDP.
·The tax rate for Cement sector would be decline to 18-20% under the proposed GDP rate.
·After implementation of GST, the cost of FMCG sector falls down to 1.5%.
·The tax rate for IT sector in GST expected to increase to 18- 20% which is currently 14%.
·The cost for new homes increased, so it would be a disadvantage of GST because it have negative impact on GDP.
·Airlines fairs increased due to GST and even fair of AC train travel and economy train travel increased.
·Even mobile phone, healthcare facilities, banking and investment services, school fees cost are increased.
·Famers gets more profit in GST regime because the merchants bought from farmers directly.
·If footwear costing more than RS. 500 will have GST rate of 18% and less than RS. 500 it would reduce to 5%
·In case of readymade garments the rate have been reduced to 12%.
·Taking cab online become cheaper and come down to 5%.
·The movie ticket costing below RS. 100 will be charged GST rate of 18% and if ticket costing is more than RS. 100 then the GST rate would be 28%.
·GST impact on returns from mutual funds’ investments will be marginal; as the GST will be charged on the total expense ratio of mutual fund.
·The GST on gold is increased and even making charges increases. There will be a 3% GST rate on gold and 5% on making charges
·The GST rate for under construction is 17% but effective rate is 12%.
·Education and healthcare systems are exempted from GST rating.
·If room tariff in hotel is more than 5000 then the GST rate would be 28%.
·On buying car the GST rate is 28% and even according to car segment additional cess from 1%, 3% or 15% will be levied on car.
·People have to pay more for mobile bills as GST on telecom services is 18%.
·GST in Five star hotels would be 18%, Non- AC restaurants would be charged by 12% and for small hotels GST rate are 5%.
·Increases in prices of IPL match and other big events due to GST rate by 28%. And GST rate on events conducted in theatre, circus, etc. will be at 18%.
·GST rate for Amusement parks and theme parks increase to 28%.
·There are many items on which GST are Exempted:
®Unprocessed rice, wheat, cereal etc.
®Unbranded Atta, Besan or Maida
®Unprocessed milk, vegetables, fish, meat etc.
·Easy to run business across all the states uniformly.
· It will lead to take place faster transportation of goods.
·Business with an annual turnover 10 lakh are needed to register for GST.
·The Indian export will foster due to increase in completion at international level for Indian manufactured goods.LOCALHOST/SYSCRYPTION/category/