What is GST - GST rates in india

Share:

GST, an important reform in the country related to economics

What is GST - GST rates in India

Introduction:

What is GST?  - GST rates in india : GST is considered to be one of the biggest tax reform in India which brought a nice uniformity in the whole tax structure of the country by the elimination of the cascading of tax which was there in the past duration.




A separate group named GST council is formed to decide the future of GST rates for different types of products in our country and they meet frequently to revise the rates according to the need of the economics of the society.

All the states CE in our country recommend some level of reduction in the GST rate according to various industries and this thing becomes one of the main agenda of these meetings. The full form of GST is goods and services tax and it is divided into three categories which are CGST or central GST, SGST all state GST and IGST or integrated GST.

Actually, the finance minister of the country of that time wanted the GST rates to be very close to the original rates of the commodities but due to some level of a customer preference issue this thing could not be considered and that is why a particular range is fixed for the GST rates.

What are the rates of GST in India?


GST rates have a bracket of 18 to 28% which is dependent on the type of commodities. The products which come into the tax bracket of this are actually considered to be the necessary items and not the luxurious items in the normal society.

And that is the reason why the government has reformed the GST rates for some commodities like notebooks, spectacles, lenses, etc. The lowest GST rate is 5% which is there for items like edible oil, spices, sugar, tea and Coffee Which are not of instant type, Indian sweets, coal and some drugs which are life-saving in nature.

These are considered to be the household necessary items that have the lowest tax rate. The next slab of the tax rate is 12% which includes processed food items and computers. After that, the tax slab of 18% comes where hair oil, soaps, toothpaste and some industrial and capital goods are covered.

At last some luxurious items like cars, air conditioners, refrigerators, aerated drinks and cigarettes and also motorcycles has a GST rate of 28%. Some items like milk do not have any GST because it is kind of a must-have item for the time being. But recently and urea formation has come which told that the items like hair oil used to have a 28% tax rate which is lowered after the realization of the necessity of the item.

What are the things which don't have GST on them?


Imposing GST was kind of a push to the industries which deals with domestic goods and they can pro-cure their input items seamlessly right now after the GST decision and also the make in India campaign.

There are some items which don't have any GST and they give zero tax to the government because they are considered to be the most important items in the life of human beings. Those items are mainly wheat, oats and cereal grains, salt, Kajal, sanitary napkins, drawing books for children, canned vegetables and music books.

These items are free of all types of GST because they are considered to be one of the most important items right now. Except this some services like Bank deposits and Pradhan Mantri Jan Dhan yojana does not have any e GST rate on them.

Advantages and disadvantages of GST:


There are various advantages and disadvantages of GST because some people think that GST rates have increased the prices if necessary items in their life to a great extent but it also has some advantages which are good for our economy.

Earlier people used to make some mistakes in paying the correct amount of tax to the government and this used to be happened because of some fraudulent practices in the middle step of the government.

But after the implementation of GST, it is really hard to push away the possibility of paying tax for different products and services because those are added to the prices by default and you have to pay the taxes to the government for sure.

The personal and other loans also have some certain GST rates like 18%. After GST implementation people believe that the taxation system is very simple right now because of the single waste system, unlike the previous taxation system which had so many rules and regulations regarding only one tax rate.

The whole tax the regime is also very uniform right now and it improves the export and the supply chain services right now.

Conclusion:


There are a few amounts of people who are dead against the GST rates because they thought that oversimplification of the tax system by our government was not good for us. Some small merchants and traders protested against it because previously the cloth merchants didn't have any GST and only had 5% of sales tax but currently, they have to pay for the taxes in all the raw materials they use in their business.

And that somehow increases the price of the finished good as well. So they are into the group who are dead against the GST rate implementation in our country. The steel traders also have some serious problems regarding the new system because previously they didn't have an as high amount of GST as it is now implemented on them.

Some private security agencies also opposed this tax reform but at the end of the day, the whole decision is by the government and for the people of our country. And if we concentrate on our societal benefits then GST should be there so that the whole taxation system remains simple and uniform throughout all kinds of products and services in our country. And that is why the government is promoting this practice even more in the upcoming days.


No comments