- After much preparation, debates, and anticipation; GST was rolled out in India on the midnight of 30th June, i.e. on July 1, 2017. The One Nation One Tax formula is being hailed as a positive measure for India by international agencies like Moody’s and the World Bank. However, as soon as and even before the new GST regime came into force, there has been a lot of skepticism around it. Messages and pictures are doing rounds of WhatsApp and Facebook, demonstrating what a huge menace GST is. So, are these messages about GST myths or do they hold some truth?
- We are here to make everything crystal clear for you. Read on to know whether these popular myths about GST have some credibility to them or not.
1. Eating out is more expensive now
Not necessarily. Earlier there was a service tax of 6 % on the total bill amount (for AC restaurants) and a VAT which varied from one state to another. VAT rates differ from one state to another and therefore pre GST and post GST bill amounts may be higher or lower, depending on the earlier VAT rate in a particular state. Further, as the benefits of input tax credit start seeping in, eating out is likely to be cheaper in the long run, and not dearer.
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