The much publicised Goods and Services Tax or GST Bill on Wednesday got the much needed push with the Finance Minister Arun Jaitley tabling the GST Constitutional Amendment Bill in the Rajya Sabha.
The bill was presented before the upper house after several rounds of talks the BJP-led government held with all the stake holders involved in the legislative framework.
The ‘One Nation One Tax’ regime would subsume all the central and state taxes levied on various stages and on various goods into one uniform tax. It will replace 17 taxes that are being levied by the states and the Centre with only one pan-India tax.
Here are a few takeaways that highlight how the widely promulgated tax regime will benefit the consumers and remove the barrage of tax levies.
What will cost lesser
Prices of cars, their batteries, paints and cements may fall. Electronic items like fans , refrigerators, water coolers, air coolers also likely to witness dip in their prices.
What will cost more
Services like eating out, products like cigarettes, mobile phones and branded jewellery to see an increase in their prices. Air travel also to be costlier.
– The GST once implemented will do away with the cascading tax effects. It will also make the ‘tax procedure’ simpler for the manufacturers.
-The issue of tax evasion has been plaguing the economy and hampering economic reforms. GST will help lessen the occurrence of tax evasions.
-Industry players believe if implemented fully the GST will open the gates of foreign investments for Indian Economy as it will facilitate ease of doing business in country.