No Tax on Tax.
India's biggest tax reform since independence, the Goods and Services Tax (GST), is unanimously passed in the Rajya Sabha with 203 votes in favour and none against.
The one-nation-one-tax regime will convert 29 states, 1.3 billion consumers and India's $2 trillion economy into a single market.
Simply to put, it is going to replace indirect taxes such as the Central Excise Duty ,luxury tax, Central Surcharge & Cess ,VAT, central sales tax, Service Tax , Customs Duty ,Entertainment tax , Purchase Tax , Lottery taxes etc — with a single tax.
It makes manufacturing cheaper, leading to lower prices of a number of manufactured goods. However, services are likely to become costlier under the GST.
Before The Passage Of Bill
From Bollywood film tickets to a Tata car, anything is subjected to a multitude of taxes that vary from state to state and sometimes double up. It is one reason why doing business across India is so complicated.
Business Expansion Will Now Be Seamless
Entrepreneurs need to get just one license for their company and once that’s done, it won’t matter in how many states they do business, as long as they pay the tax. With the GST, there will be one registration and a common tax rate.
According To Experts, These Items Could Become Cheaper
Auto: Prices of entry-level cars, two-wheelers, SUVs may fall
Car batteries likely to get cheaper
Paint, cement prices likely to fall
Electronics items like fans, lighting, water heaters, air coolers, etc. will get cheaper
And These Could Become Costlier
Cigarette prices likely to go up as GST rate for tobacco will be higher than current duties
Mobile phone calls may get costlier as service tax will go up
Textile and branded jewellery may become costlier
The GST will be implemented from April 1, 2017