Financial Constitution made several changes in GST
From Todays onwards, the India doesn’t remain the same as after the implementation of GST Constitutional Bill lot of thing has been changed. The India which was tangled between the strings of different several taxes has been now freed up from those different taxes all due to GST which states “One Nation, One Tax”
GST rates have been fixed for over 1,000 items, and the GST Council has taken care that the new tax slabs are as close to the current structure to ensure that the transition is revenue-neutral.
What is GST?
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
With the GST all taxes has been divided into 4 tax Slabs —5%, 12%, 18% and 28%—most of the commodities fall in the 12% and 18% slabs.
The new tax policy will lessen the burden on consumers, but there will be some products which will now be taxed at a higher rate, thereby increasing their prices. However, the good thing is that government has kept essential items of daily use tax-free, that is, either at zero tax rate or completely out of the ambit of tax under GST. Here’s the Graph showing GST Impact.
Petroleum products such as petrol, diesel and aviation turbine fuel have been kept out of GST as of now. The GST Council will take a decision on it at a later date. Alcohol has also been kept out of GST.
The GST Council has also decided to set up an anti-profiteering committee which will take up complaints and recommend actions to ensure that the benefit of lower tax rates under the GST is passed on to consumers and industry does not jack up prices. The committee will have officials from the both central and state revenue departments.