From 1st July 2017, GST is implemented in India and it will replace all current taxes and duties of Indian central government and state governments. It is a new structure of goods and services tax that is much simple and transparent than previous complex tax structure. GST is implemented to make India a unified market for businesses. With GST, it will be easy for people to start new businesses and cost of various products will be reduced. GST is already applicable in most of other countries from a long time but India will also follow the GST system as a unified market.
GST is applied in India to provide various benefits to consumers as well as customers. People want to know about the process of GST in India and about its effects on the market. Well, the Indian government has applied this new tax system as a Dual category of:
- Central Goods and Services Tax (CGST)
- State Goods and Services Tax (SGST)
Both of these GST systems will replace the various taxes and duties that were applied by State and Central governments of India. This new tax system will be applicable to various goods and services come under the categories of:
- Intra state supply and consumption of various goods and services
- Interstate movement of goods
- Import of Goods and Services
After GST, the Indian taxation system will be changed completely forever. Where some goods and services will be affordable, the price of some products and services will be increased. In GST system, they covered most of goods and services in four different categories of tax. People will pay the tax from 5 % to 28 % on these products and services.
Under 5 % GST tax:
On daily essential products and various services like daily food items, skimmed milk powder, frozen vegetables, coffee, tea, spices, coal, medicines, Raisin, Ice and snow, Bio gas and services like transport, you need to pay 5 % of GST tax.
Under 12 % GST tax:
To buy various products like frozen meat, dairy products, dry fruits, fruit juices, Ayurvedic medicines, cell phones, and services like NON AC hotels, Business class flight tickets, fertilizers and many more services, you need to pay 12 % of GST tax.
Under 18 % GST tax:
On goods like footwear priced over Rs 500, goodwill, software, Biscuits, corn flakes, pastries and cakes, jams, sauces, soups, mineral water, note books, camera, speakers and monitors and services like AC hotels, telecom and IT services, branded garments, you will need to pay tax of 18 % on these items.
Under 28 % GST tax:
If you want to buy goods like shaving creams, shampoo, dye, ceramic tiles, chewing gums, chocolates, pan masala, paint, water heater, dishwasher, washing machine, automobiles, motorcycles and services like 5-star hotels and cinemas, 28 % of GST will be applicable on it.
So these are various categories of GST that will be applicable to various goods and services. Some of the products will become affordable and others will be little expensive after GST.