Look4Expert is committed to educating the common person about the effects of the upcoming Goods and Services Tax or the GST. The tax reform targeted by the GST has been long pending and is finally expected to see the light of the day on July 1st. The GST is aimed at reducing the multiple layers of taxations that are prevalent like the Service Tax at all levels, the VAT and the like. It will be a common tax that will be charged at the end when the final consumer buys it.
Thus, it will be the common man that will be paying the final tax while consuming the goods or services. The biggest boost that the GST will give is to the manufacturing sectors of all kinds. This is aimed to draw more investors to the country to set up manufacturing plants with a transparent tax system. The current multiple layers of taxations that only get complicated at every stage from the setting up of the plants, moving out of the goods from the plant to the retailer fails to draw fresh investments from other countries.
Steady rise in GDP
A transparent tax system that is fully digitalized with an integrated platform is likely to bring down the prices of a host of consumer goods. The net result is that there will be more consumption in the domestic market and a rise in the GDP. When it comes to the State and the Centre’s share of tax money, it is the states that are set to gain in terms of compensation of the loss of revenue in phases. The Look4Expert professionals are available for free consultation on all matters concerning the new tax system and the way that it is set to influence your business.
The flip side
There is always a flip side to everything and the GST has it too. The tax amount is way too high with the slabs ranging from 5%, 12%, 18% and 28% for different categories of goods and services maximum tax rate capped at 40%. As the current retail tax on a number of goods is fixed at 4% currently, some common goods like garments are likely to become more expensive. Automobiles, electronic goods and dining are likely to cost less while health care, education and real estates will see a sharp rise in price.