What are the benefits of GST Bill in India?

On Wednesday (3^rd Aug, 2016), the GST Bill presented. This bill is very important for common people because if this bill will be pass people will get more and more benefits. Peoples have more hopes from this GST bill. Now days we pay taxes for state as well as centre level. So this bill is very important for everyone.

For this bill Government should have 123 seats. Parliament have total near 244 seats, in which BJP have 67 seats and congress have 60 seats. If congress ready with BJP then this bill will be pass without any arguments. Because there total will are 127 and they need 120. So we think this will be passing, if congress will agree with BJP.

Benefits from GST Bill

There so many benefits from this bill like:-

No Service Tax on Transactions: - Now VAT and Service Tax are paid separately but with GST only one tax will be paid while purchasing home or on other transactions.

Less Cost on Dining in Restaurants: - Right now VAT is charged as per state defined but with GST only one tax will be paid.

Cheap Consumer Durable: Consumer products like air conditioner, microwave oven, fridge, washing machine will be cheap to buy as excise duty will be waived off.

Cheap Logistics Cost: - Expenses of logistic companies will be down by almost 20%. Further to the benefit of both companies and common people.

Industry: - Benefit of various industries as 18 taxes are not to be filed separately hence making tax filing simpler.

While there are benefits of GST bill there are some of the products whose cost will go up. Some of them are:-

Tea-Coffee/Packaged Food: - cost of processed food products will increase by 12%. As currently there is no duty imposed on sale of these products.

Services: - Mobile bill, credit card services or any other services will be costlier as currently while 15% is paid for services, it will increase up to 18% after GST.

Discount: - Right now tax is paid out on this discounted price on product but after GST bill the taxable amount will be calculated on MRP of a product.

Gems & Jewellery: - Right now only 3 % duty is levied on sale of gems and jewellery products but after GST bill a tax of 12% will get imposed.

Ready-made Garments: - Right now only 4-5% Vat is levied on sale of garments but after GST bill a tax of 12% will get imposed.

GST means Goods and Services Tax, This will used in place of indirect tax in 20 state and centre level. After GST bill pass Excise Duty, Services Tax, Additional Custom Duty, Special Additional Duty of Custom, VAT/Sale Tax, Central Sales Tax, Entertainment Tax, Entry Tax, Luxury Tax will finish/close. And after this only 3 types of tax will be charged i.e. Central GST, State GST, Integrate GST(IGST for If any business done between two states then it IGST will be applicable and then centre government distribute equally between both of the state government.). Now every common man if purchase a product from any state x amount then the same product will be sale by x amount by the companies and people can purchase this product by x amount. One product will not be sale by two different amounts by the state government. After GST this will be sale by same amount.

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