Since the time it was announced that GST will be rolling out soon, the common man has been waiting eagerly for the final Tax Slabs to come out. The final GST slab has been announced and it seems to be consumer friendly. Essential commodities have been given lower slabs, whereas luxury goods have been kept in the highest slab.
There is also a no tax category. Items included in this category are food grains, poultry, milk, fresh meat, curd, fish, flour, cereals, bread, salts, printed books and handloom etc. So the GST rate for all these commodities will be zero.
Commodities under 5%, 12, 18% and 28% tax slabs:
Commodities such as tea and coffee, which are used by the common man, will fall under this category. This slab also includes commodities such as kerosene, medicines, and frozen vegetables. Air and rail services are also included under this slab.
Items which are included in the 12% tax bracket are cheese, Ayurvedic medicines, mobile phones, frozen meat products, sewing machine and butter.
The majority of the items will fall under the 18% tax slab. Items included in this category are mineral water, ice-creams, cameras, not books, pastries, telecom services, steel products, refined sugar, financial services and more.
The highest tax slab is 28%. Items included in this category are personal luxury items such as yachts, automobile, motorcycles. Also, items such as hair shampoo, washing machines, vacuum cleaners, dishwashers, refrigerators, air conditioners, vending machines, deodorants and other such items are included in this tax bracket.
Impact of GST
We feel that in the implementation of GST mostly won’t affect the common man as essential commodities will be exempted from the tax or will fall under the 5% tax bracket. Another positive aspect of the GST is that services such as education and healthcare are exempted from the tax.
The government also feels that there will be an overall reduction in the in tax on a majority of the commodities and services. It also feels that one of the main criteria for the implementation of GST that it should not have an inflationary impact on the economy.
The post Gst Tax Slabs, a win-win situation for the common man appeared first on Corporate Finance Loans.
