GST(Goods and Services Tax) will be effective from midnight on Friday, after being the debatable topic in the parliament and after amid protest from the opposition parties.
It is believed that GST(Goods and Services Tax) is the India’s biggest tax reform which will be launched by the Prime Minister Narendra Modi at Parliament’s historic Central Hall at midnight. It will be effective from July 1, 2017.
The upcoming Goods and Services Tax would be launched in the presence of President Pranab Mukherjee.
It was reported that Former Prime Ministers Manmohan Singh and H D Deva Gowda was also invited to the event.
It was learnt that the GST (Goods and Services Tax) will likely change the indirect tax scenario of the country
GST will affect common man?
Yes, the common man will be seen affected from the Goods and Services Tax as the prices of the goods and services will rely on the nature of effectiveness.
Look at the table to understand Goods and Services Tax more clearly:
|Products||Current rate (%)||After GST (%)|
|Tableware – Metal||18
Revised 12% for spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
|Perfume||17.5 – 27||18|
|Tableware – Ceramic||17.5||18|
|Tableware – Wood||18 and 28|
|Tableware – Plastic||18|
|Kitchenware – Metal||11-20.5||18|
|Revised 12% for Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs|
|Kitchenware-Ceramic||17.5 – 27||18|
|Kitchenware-Wood||18 and 28|
|X-Ray Apparatus (for medical, dental & veterinary)||17.5-27||12|
|Footwear (below Rs. 500)||14.41||5|
|Footwear(above Rs. 500)||14.41||18|
|Readymade garments (below Rs. 1000)||5-6||5|
|Readymade garments (above Rs. 1000)||18.5||12|
|Biscuits( Less than Rs. 100/kg)||11.89||18|
|Biscuits(Above Rs. 100/kg)||16.09||18|
|Baby food (sold in unit containers)||7.06||18|
|Small Cars (<4m <1200 cc petrol)||25-27||28+1 (cess)|
|Small Cars (<4m <1500 cc diesel)||25-27||28+3 (cess)|
|Mid-segment (<1500 cc)||36-40||28+15 (cess)|
|Cars with 1500 cc & larger engines||41.5-44.5||28+15 (cess)|
|Vehicles for transport with 10 to 13 passenger capacity (cannot be considered as bus)||39-41||28+15|
|Motorcycles Engine >350||25-35||28+3 (cess)|
|Stationery (Paper)||12 and 18|
|Rates revised on following items from 18% to 12% – Exercise books and note books|
|Stationery (Pen/Fountain Pen)|
|Rates revised on following items from 18% to 12% – Eraser|
|Music Instruments (Other than Handmade)||25-27||28|
|Luxury items like yacht||25-27||28+3 (cess)|
|Music Instruments (Handmade)||0-12.5||0|
|Renewable energy devices||17-18||5|