Tally for Practicing CAs Gold Edition (Multi User) Tally for CAs in Industry Silver Edition (Single User) Tally Renewal (Auditor Edition) Need Tally for Clients? (Tie-up with us!!!)
Service Tax »
  Income tax on EPF at the time of withdrawal
 Which of the 4 ITR forms is applicable to you? Income Tax Return for AY 2020-21
 Know taxation rules for clubbing income of minor child and spouse ITR FY 2020-21
 Income tax on EPF at the time of withdrawal
 Amendment of the Income-tax Rules, 1962 to prescribe manner relating to option under section 115BAC and 115BAD, and that of determination of depreciation under section 115BAA to 115BAD, of the Income-tax Act, 1961
 Steps and documents needed to e-file your ITR Income Tax Return for AY 2020-21
  Avoid these errors while filing returns or you may get a notice Income Tax mistakes
 You can file income tax returns on your own in just 15 minutes; here's how ITR filing for FY 2019-20
 Salaried taxpayers need a WFH income tax deduction for the FY 2020 21
 All about faceless tax assessments
 Here's why it is necessary to file income tax return before November 30 deadline ITR 2019-20

What will cost more and what will be cheaper for you due to GST? Here's the list
April, 05th 2017

With the passage of the GST Bills in the Lok Sabha last week, India's biggest tax reform - Goods & Services Tax (GST), is all set to see the light of day soon. Touted as a reform which would reduce business transaction costs by creating a single seamless nationwide market, GST is expected to provide the much required tonic for economic growth.

With prospects of GST increasing the GDP by 2 percent, the momentous legislation, atleast for the short term, may emerge as a mixed bag for the common man. While most services may turn out to be more expensive, it may be a jumble for goods.

While in the long-term, GST should have quite a favourable impact on most sectors in the Indian economy, the short-term impact, as in the case of most reforms, may be limited. Basis the GST implementation experience in most countries, India may witness an inflationary impact during the transition phase, which should fade away with the legislation sinking in and operationalizing of measures like anti-profiteering.
Here is a look, at the expected immediate impact of GST on the common man's pocket:

These services are likely to become more expensive
A commoner should, at least till the time the service industries do not pass on the benefit of increased credits, budget for some increased pocket pricking on some necessary services like:

Basic luxuries for a common man like WIFI and DTH services, online booking of tickets may become costlier as well.
Prices of these essential services also likely to rise
Also, in the backdrop of quite a bit of current exemptions subsiding, various essential services may cost an arm and a leg under the GST regime. For example, where the current exemptions are discontinued:

In terms of goods, where an exemption/ lower rate is prescribed for essential goods, GST is expected to marginally better the house economics as a whole. Further, under the GST regime, depending on the current supply chain arrangement and state of operation following may become cheaper:

Again depending on the current supply chain structure and related indirect taxes, a commoner could expect a 2% to 3% plus or minus impact on white goods like:

The Government aligned with its negative outlook to deleterious goods, proposes a higher tax on 'sin goods' which essentially includes aerated drinks, cigarettes and tobacco products. Where a higher rate of around 40% is proposed on aerated drinks, the same may witness an increase in their prices.

Positive impact on cost of most supplies in long term expected
While the above anticipations are mostly basis the information released/ statements of government officials available in the public domain, we would need to await the final fitment structure released by the Government on categorization and related rates for various goods or services. Nonetheless, with enabling of anti-profiteering and other corrective measures, GST should result in a decreased cost for most supplies to the end consumer in the long run.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting