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2017

How Recent GST Changes benefit Common Man

Impact of Recent GST Changes on Common Man

GST (Goods and Services Tax) has spread both confusion and chaos across the corporate sector in India. Apart from finance and account-related problems, many business persons are still in the state of confusion because of the lack of clarity in India’s biggest tax reform. The GST regime is here to stay and the government has started to consider the requests from various industry sectors.

Recently our Finance Minister Mr Arun Jaitley has slashed GST rates for over 178 items, and from November 15, 2017, over 200 items are going to be cheaper than before because of this rate cut from 28% to 18% or even 12% or 5%. Only 50 items are now remaining in 28% slab. As per the new notification, manufacturers and traders have to give only 1% GST. It is interesting to see the impact of this recent rate cut on the common man as many common man’s items now come under 18% instead of 28% slab.

Shampoo, perfume, tiles, and watches are among a few items of daily use that will become cheaper as GST is reduced from 28% to 18%. The government has reduced GST from 18 to 12 percent for condensed milk, diabetic food, and refined sugar, and khandsari sugar and dried vegetables are now exempted from tax. Unbranded Ayurvedic medicines will come under 5% tax from previous 12%. Some stationary items, diesel engine parts, etc. also have a rate cut from 28% to 18%. ‘Khakra’ and unbranded namkeen, which are considered as a favorite snake for the common man, have now only 5% GST. Previously, it was 12%.

Considering this recent rate cut, we can certainly say that many common man-related items are going to be cheaper now, and as a consumer, more people can buy these items with ease. What’s more, dining out in hotels or restaurants will also become cheaper because of a rate cut from 12 and 18 percent to just 5 percent. Plastics industry and ICRA have hailed this rate cut and described it favorable to the consumers.

The good thing is the government has also ensured various industry sectors to consider their genuine and valid demands. Apart from taking various steps to make GST framework easy for businesspersons, our government also focuses on making it favorable for the common man.

GST is a giant leap toward ‘One Nation, One Tax’ approach, and it can be a game changer for the Indian economy. The implementation would remain a key factor for the success of GST.

Munimji, a premium business accountancy training and placement firm, makes accountants ready for GST and facilitates companies to hire expert accountants to take care of GST-related aspects.

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