For the past 1 year, it was a big debate around the implementation of GST to boost Indian economy to another great extent and brings revolution in future. But top leaders and political parties from opposition opened their furor and expressed constant grievances to protest the biggest and bravest movements taken by the Indian Government. Many ordinary and poor people from every corner at our country financially suffered a lot due to a direct increase in goods price, costlier prices of some daily-used materials which are mostly consumed by the 90% of people.
Allegations from every corner regarding the government’s GST roll-out and last year’s notes ban have caused an economic commotion. Also, traders all around the country and small business owners help this Government solely responsible for this financial misery of common people.
Finally, our respected Union Finance Minister Arun Jaitley on Friday announced a big overhaul of new national tax GST, saying only 50 items will remain in the highest tax slab of 28 percent, with 178 others moved to the 18 percent bracket effective November 15. Dining out will also become cheaper, with food at all restaurants in the country, except those in starred hotels, to be taxed at 5 percent rather than 18 percent. The decision is marked as “people-friendly and people-centric” by our beloved Prime Minister Mr. Narendra Modi.
Below are 10 -point cheatsheet that you must need to remember:
- Tax rates, especially in the tax bracket of 28 percent, is been reviewing and rationalizing by the GST council time to time. Also, the decision by the council itself to move 178 items from the tax bracket of 28 percent to 18 percent is been appreciated a lot.
- Daily used products like shampoo, deodorant, toothpaste, shaving cream, aftershave lotion, shoe polish, chocolate, chewing gum and nutritious drinks; which are consumed mostly by the common people of our country, will no longer be kept in the tax slab of 28 percent.
- The returns filing cycle has also been reviewed by the council and the rules and deadlines for the current fiscal year are been eased out. The Late filing penalty is also being relaxed.
- 13 items will move from the 18 percent slab to 12 percent, six items from 18 percent to 5 percent, eight items from 12 to 5 and six from 5 percent to nil in more tax rate changes as said the Finance Minister.
- However, West Bengal Finance Minister Mr. Amit Mitra has given the credit of bringing down the tax rates to opposition parties and their leaders, he also expressed openly that few essential items are still in the higher slab of 28 percent which still needs to look after.
- The head panelist of this GST network in council Mr. Sushil Modi said that the new changes will cost the exchequer around Rs. 20,000 crores ($3.07 billion) this financial year.
- The Finance Minister also gave his important opinion on eating out saying that while all restaurants in and outside hotels will carry a 5 percent GST charge, at those in starred hotels with room tariffs above 7,500 a night there will be no relaxation of paying exactly 18% GST. According to Mr. Jaitley, the benefit of ITC (Input Tax Credit) to restaurants has been rescinded to restaurants because they were not passing on the benefit to customers.
- According to a Reuters poll, India’s economy is anticipated to produce at its slowest pace in four years in the fiscal year that ends on March 31.
- Congress Vice President Mr. Rahul Gandhi expressed his interesting view by tweeting – “We will not allow BJP to impose a Gabbar Singh Tax on India. They cannot break the back of the small and medium businesses, crush the informal sector and destroy millions of jobs”.
- Like traditional political debate, this time also the Congress party alleged that the GST review is a timely and tactical movement to keep the interest of the common people of Gujrat intact just before the next month’s crucial assembly elections where the important voter group of small traders is upset with the new tax regime.