On 19-May-2017 In News
On May 18, 2017, The Goods & Services Tax (GST) Council fixed the rates for specific items. The commonly used products and food grains will become cheaper, while the tax rate on daily commodities like milk, sugar, tea, coffee and edible oil will not change. The Council has fixed rates for 1,211 items of which most items would be taxed at 18 percent. The new tax regime will make Asia's third-largest economy, India, a common market, in which central and state levies will be eliminated. This will increase state and federal tax revenues, check inflation and speed up India's economic growth by 1 percent to 2 percent.According to The Times of India, Revenue Secretary, Hasmukh Adhia said automobiles will attract 28% GST, with luxury vehicles facing an additional cess of 15%. The tax rates of items like hair oil, soaps and toothpaste have been reduced from 28% to 18%. Also, the tax rates for few electronic products have been lowered down. Thus, GST bill is going to be consumer friendly and not inflationary.
The Goods and Services Tax (GST) could bring happiness to millions of people in the country. A crucial meeting on Thursday finalised overall reduction in tax on basic commodities and services, that will result in improved tax efficiency. It will ensure tax buoyancy and makes sure that the common man will not have to pay more when India's biggest tax reform rolls out on July 1.
Let's hope for the best.Source