What is GST ? What will be likely to be costly and cheaper ?
Last Month, Indian Govt have announced to launch the Goods and Sales Tax in all over the India. The Goods and Sales Tax (GST), will be scheduled to be launched on 1st July 2017. Which is Increase the cost of different products in India. This cause worried to all Indian. So, Most of the people are looking for How must GST will applied ? On Which goods GST will applied ? Which services are likely to become more expensive ? Prices of services also likely to rise , Services that may get cheaper in most states, Marginal impact on white goods . So, In this article you will get to know the answers of these questions.
What is GST?
Goods and Sales Tax (GST) is comprehensive, multi-stage, destination-based tax that will be levied on every value addition.
To understand What is GST, First of all we will discuss Multi Stage. As a name suggest Multi Stage mean Multiple stages. When Goods are produced, these products go through various stages. First Stage is Buying RAW material, Second Stage is Production or Manufacturing, Then these is warehousing, means storing the Furnished product. sale of the product to the retailer. And in the final stage, the retailer sells you – the end consumer – the product, completing its life cycle.
Services that are likely to be Costly :
With the affect of GST, the services that are likely to more expensive. The budget for some increased pocket pricking on some necessary services like:
- Mobile bills
- Renewal premium for life insurance policies
- Banking and investment management services
- Basic luxuries for a common man like WIFI and DTH services, online booking of tickets may become costlier as well.
- Residential rent
- Health care
- School fees
- Courier services
- Commuting by metro or rail may become expensive.
Service that are likely to be Cheaper :
With the affect of GST, the services that are likely to more cheaper. The budget for some decrease pocket pricking on some necessary services like:
- Prices of movie tickets
- Theatrical performances
- Dining in restaurants
- Entry-level sedan (except small cars)
- SUVs and luxury or premium cars
If you want some more information. Please feel free to comment.