Goods and Services Tax or GST is the talk of the town these days and there has been significant development on this topic. As per the latest new, Govt has recently launched the GST portal where one can find many information and also register for Goods and Services Tax online.
Here is the official website for GST : www.gst.gov.in
Govt is trying their level best to complete the backed software & necessary infrastructure as soon as possible. There are more than 65 lakh VAT payers, about 20 lakh service tax payers and about 3-4 lakh central excise duty payers and this huge data need to migrate to the new GST portal soon. New registrations under GST will start from April 2017.
GST Slab Rate 2016 – 4 Slabs from 5% to 28%
GST will be implemented in 4 slab. Considering the regular goods and essential items including food the slab will start from 0% and a lowest rate of 5 per cent would apply to common use items. Here are the expected GST slab rates would be..
- GST 1st Slab 5% Tax – Will be applied on spices, tea, mustard oil etc all essential items of daily life.
- GST 2nd Slab 12% Tax – Process food items such as bread, cheese, ready-made meals, milk etc.
- GST 3rd Slab 18% Tax – Products like soaps, oil, toothpaste, refrigerator and smartphone etc will be included under this slab.
- GST 4th Slab 28% Tax – This tax slab will be applied on all luxury goods, luxury cars, tobacco products, pan masala and aerated drinks etc. There will be additional cess and clean energy cess on the top of the highest tax rate.
Top 3 benefits of GST to consumer India
Although you may think that GST is not directly linked with out direct tax, but the impact of GST will be in our life only. Here are few benefits of implementation of GST in India.
- The very first thing one should understand that the product you are buying today has to come to you after applying many kind of taxes which actually making everything very costly. Now with the implementation of GST all those 17 indirect tax will be removed. We can expect the fall of prices of various goods in our daily life.
- With the reduction of so many taxes, it will be very easy to monitor & track the tax flow in every segment of business.
- It will also curb the black money and reduce the corruption in long run.
This is just a short article with to the point information. The topic GST is very vast and one need to understand many things to get how actually GST will benefit and apply in our system. You can also take a look at the article shared in economic times for more information.