GST launched: Is your monthly household budget ready?

GST effect! Watching an IPL match in stadium to become costlier after July 1

GST effect! Watching an IPL match in stadium to become costlier after July 1

At the stroke of midnight when the Narendra Modi government launched goods and services tax (GST), a new tax subsumed multiple indirect taxes, throwing into doubt its impact on various industries.

Shringi added that prices under GST will not surge, but reduce because of the "anti-profiteering law", which requires that if there is an excess of profit at the manufacturer or the seller's base, it is mandatory to be passed on to the consumer.

PM Modi while detailing how GST would help fight corruption and black money, also had reassuring words for small traders jittery about being drawn into the tax net and complicated processes. "From Ganganagar to Itanagar and Leh to Lakshadweep, it is one nation, one tax", he said.

The GST Council had fitted almost 2,500 goods and services in the five-tier tax structure of 0, 5, 12, 18 and 28 percent. However, numerous services such as mobile phone services, healthcare services as well as transportation charges are expected to attract a tax rate of 18%, which is 3% more than its current 15% tax rate. Pranjul Bhandari, chief India economist at HSBC, explained that in HSBC's previous estimate, the growth fillip was meant to come from "having the same tax rate for each product across all states and having the same tax rate across all goods and services".

In Kolkata, many shopkeepers said they had not switched over to GST at all. "Prices may go up for a few items but prices of maximum items will either go down or remain unchanged", said Jaitley, adding that every businessman will have to file only one return by 10th of every month after which the computer software will automatically generate the rest of the reports.

GST was first proposed in 2003, but the idea could not take off in wake of stiff opposition from opposition parties.

However, the People's Democratic Party (PDP) - Bharatiya Janata Party (BJP) Government has claimed that the "special status won't be diluted in any case". But now, a trader with a turnover of Rs 20-75 lakh will have to pay 2.5 per cent tax.

GST has caused initial hiccups everywhere before stabilizing in one year.

Another bill is surfacing online which shows a bill without GST, as fresh fish is exempted from the tax.

Malaysia implemented GST after debating it for 26 years.

The important tax reform which the country has been waiting for a decade-and-a-half is beginning Saturday, he said after attending the midnight function in Parliament organized for a rollout of the GST.

"There will be inflation. Micro, small and medium scale traders will suffer huge losses due to this", Chidambaram told media here.

Recommended News

  • GST marks death of democracy, says Mamata Banerjee

    GST marks death of democracy, says Mamata Banerjee

    Meanwhile, state Finance Minister Amit Mitra said, "On regional cinema in Bengal, irrespective of the GST rate, the tax would remain at two per cent".

    Five GOP senators now oppose health bill _ enough to sink it

    Experts expect that this would cause a death spiral, where only the sickest patients purchase coverage and premiums skyrocket. Analysts noted that if all Democrats vote against the bill, only two GOP votes would be required to stop it from passing.
    London tower blocks evacuated over fire concerns

    London tower blocks evacuated over fire concerns

    The MULTI-agency meeting has taken place to discuss the safety of all Staffordshire residents living in high rise tower blocks. The difference they can make really is life-saving - it's like having your own personal firefighter there in your home.
  • Do-it-yourself patch could replace annual flu jab

    Do-it-yourself patch could replace annual flu jab

    Initial experiments show the patch is safe, effective as traditional flu shots and patients could actually give it to themselves. Scientists are now planning to test the new patch in children, as well as develop patches for other vaccines beyond the flu .
    Fake TIME magazine covers displayed at Donald Trump's golf club locations

    Fake TIME magazine covers displayed at Donald Trump's golf club locations

    The Post reported there was no March 1, 2009, issue of Time Magazine - and no issue at all that year with Trump on the cover. The next appearance after that was August 31, 2015, and he has been on the cover 14 times .

    German city evacuating high-rise found with flammable material

    The supplier of the material, a US-based firm called Arconic, said on Monday that it was stopping all sales of the material for tower apartment blocks.
  • Brogdon a unanimous NBA All-Rookie Team pick

    Brogdon a unanimous NBA All-Rookie Team pick

    Embiid only played in 31 games this year, which cost him Rookie of the Year honors despite putting up 20.2 points per game. He shot 45.7% from the field and 40.4% on threes, which was No. 1 among rookies who attempted at least 190 threes.
    Three CNN journalists resign after Russia-related article retracted

    Three CNN journalists resign after Russia-related article retracted

    So it was pulled, and an apology was offered to Scaramucci, who accepted it. "Everyone makes mistakes. Taking to Twitter on Tuesday morning, Donald Trump ripped into CNN over their retracted story.
    GOP senators now oppose health bill _ enough to sink it

    GOP senators now oppose health bill _ enough to sink it

    The GOP senators who joined Johnson in the Thursday statement were Ted Cruz of Texas, Mike Lee of Utah and Rand Paul of Kentucky. That would focus the aid more on people with lower incomes than the House legislation, which bases its subsidies on age.
  • Obama 'colluded or obstructed' trying to help Clinton — Trump Twitter

    Obama 'colluded or obstructed' trying to help Clinton — Trump Twitter

    In just three days, he has made eight public statements about Russian meddling in the 2016 United States presidential election. Many Democrats and some Republicans have spoken out against the Senate's healthcare plan since it was unveiled.
    Congress will repent decision to boycott GST session: Naidu

    Congress will repent decision to boycott GST session: Naidu

    The government, however, defends the decision saying enough time was given to businesses to adapt to the new regime. But he has assured that the effort would eventually help reduce rampant tax evasion.
    White House Responds to Comey Tape Inquiry with Trump Tweet

    White House Responds to Comey Tape Inquiry with Trump Tweet

    Trump repeatedly refused to say whether he believed Mueller would have to recuse himself from the inquiry. He should have done something about it.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.