The Government Of India had recently announced a major tax reform in the parliament with an aim to improve the taxation system in the country. The reform has come into force on July 1. The reform is said to be highly beneficial in centralizing taxes across the country.
The reform has got mixed reactions from the public. While some are appreciating the new reform, many are against it. It is also said that GST will make online shopping expensive.
On the very first day, Shobhaa De tried to express the adverse impact of GST reform. She shared a picture of a receipt from Murugan Idli Shop in Chennai writing “GST ke side effects. Unaffordable idlis,”
GST ke side effects. Unaffordable idlis pic.twitter.com/1wZCaHjT4h
— Shobhaa De (@DeShobhaa) July 1, 2017
However, she was badly trolled for her silliness as the receipt did not even include idli, but ghee pongal and coffee.
People are still believing that the basic consumer durables have become expensive, but that’s not true.
As passed by the central government of India, the Goods and Services Tax bill will have a four-tier slab with tax division rates distributed as- five per cent, twelve per cent, eighteen per cent and twenty-eight per cent. As promised by the centre, GST is been brought to nourish the economic condition of the country, but at what cost?
Surely, for a change in the economic behaviour, rates of certain commodities will go high which will affect the money in our pockets. There are no two notions regarding the good will of the countrymen as all of us desire the progress of our nation. But the government has also surprised us by putting no tax on items that you might have never thought of.
Here is a list of common items with their GST rates and earlier Indirect taxes:-
1- The basic food items like wheat, rice, unbranded flour, curd, butter milk, unbranded honey etc had tax rate ranging from 2.5% to 6%. But now, all these products are tax free.
2- Products like milk powder, sugar, vegetable edible oils, tea, spices, and sweetmeats earlier had a tax rate of 6%. It has now reduced to 5%
3- There has been no change in rates of Ketchup, Sauces, Mustard Sauce, and Spreads. It is still 12%.
4- Mineral water has witnessed a drastic fall in tax rate from 27% to 18%.
5- The tax rates of Confectionery items, footwear,LPG stove etc have fallen from 21% to 18%.
6- Daily use items like Hair oil, toothpaste, soap etc had a tax rate of 27%. It has reduced to 18%.
The list is long. But what we have inferred is that the items that had a huge tax rate have witnessed a fall, as 18% is the maximum standard rate for all consumer durable items.
So, what do you think now? Share your opinions in comments.
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