GST – Some Facts You Should Know
GST is in the air. You must have heard people talking about it or seen it in the news. GST in India is to be effective from July 1, 2017. Much has been said, both good and bad about this tax reform. Here we present you with some more interesting facts and tidbits.
- GST is finally being implemented after 17 years. Believe it or not, the first discussion was started by the Vajpayee government in the year 2000. An empowered committee was set up headed by Asim Dasgupta who was then the Finance Minister of West Bengal.
- Under the GST (Goods and Service Tax) system, both Central GST and State GST will be charged on manufacturing cost and will be collected on point of sale. Even Canada has a similar sytem. This will benefit people as prices will come down which in turn will help companies as consumption will increase.
- Doing business will be easier as the tax system will be more transparent with no hidden taxes. The biggest benefit will be that multiple taxes like Octroi, Central sales tax, State sales tax, Entry tax, License fees, Turnover tax etc will no longer be present and all that will be brought under the GST.
- On the darker side some critics say that GST would negatively impact the real estate market. It is being estimated that it would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent. Also some economist say that CGST, SGST and IGST are nothing but new names for Central Excise/Service Tax, VAT and CST and hence GST is just a repackaging of this and does not bring anything new to the table.
- To the convenience of all, you can actually enrol for GST online by visiting the government website at https://www.gst.gov.in/ There will be four tax slabs of 5%, 12%, 18% and 28%. Luxury and demerit goods will be taxed at 28% plus cess. Unlike other countries where GST has already been implemented, India opted for dual GST – SGST and CGST, administered by State and Centre respectively.
Hope we were able to amuse you with these facts. We want to help you. Get in touch with us at firstname.lastname@example.org for more information about kickstarting and navigating your startup the right way!