GST or goods and services tax proposal leaves the Indian economy in a state of vehement debates. While the parliament struggles to accommodate the issues of the common men, the common men versed with only a vague idea of the bill proposed. Here is an attempt to tell the ‘common’ why they should overwhelming embrace the GST regime.
Bill reliefs in restaurants!
Yes, you heard me right, GST bill would relax those taxes levied by restaurants to spoil that pleasure of your lavish lunch. The long list of taxes above service tax included in your restaurant bill would subsume into one tax under GST. So rest back and happy dining! If you look back to that heavily charged bill and the new one under the future GST regime and compare both, this is what it will look like:
Cheap tours to markets
GST would reduce prices of consumer goods to a ‘wow’ extent. Since tax will be levied on the value addition at each stage in the supply chain, it avoids the cascading effect of double taxation. The consumer here is ultimately blessed by lower tax burden and consequently lower prices. So now put on that expensive shoes and brag about your high maintenance fashion without worrying about the heavy shopping bills.
Oops, that’s sad.
Did the above benefits of GST give you vanilla dreams? Well, it will be hard to come to terms with the possibility that it might heighten your phone bills. Under the four-tier system, the telecom industry is most likely to pay the taxes at the rate of 18%. This would mean a sharp rise of 3% above the present rate of 15%. Now, this would create havoc in the most dynamic industry of an economy. Tough times ahead for the telecom industries!