The Benefits of a Unified Tax Structure & GST Rates
The financial year 2016-2017 brought with it multiple drastic changes. And each and every with the motive of bringing sustainable changes in the near future. The aim was to and still remains upgrade of India in the globalized market. Under that, the first step of having a more unified structure in terms of taxes levied on products was the first and most crucial step. The foreign market already works with fixed and unified GST rates. And thus dealing at any level is easier and so are their foreign trades. But when it came to India the traders had a hard time understanding the variations in tax laws at every level. With GST (Goods and Services Tax) this particular problem has been effectively resolved. And a unified rate list, available publicly, is beneficial to the understanding of where and how much you are paying on items.
July 2017, when GST was launched in India as an indirect tax levied by the central and state governments on the public it suffered from the great backlash. People were unable to understand why all of a sudden they were paying 18% on some items and 6% on some. And on top it the bill showed two kinds of GSTs. With the initial rage stemmed out, one is now aware that the two GSTs stand for the central and state governments respectively. The most recent update in GST rates sees that the government has categorized all items under 5 major slaps. And the tax percentage has also been accordingly divided.
Analyzing GST: the current trend
The division has been according to the category. That category includes luxury items, utility items, and cleanliness and hygiene essentials among others. The highest of 28% tax remains reserved for the luxury items. But as a result, at least 177 items have now been transferred to the 18% tax list. The latest changes in GST rates saw tax reduction on a majority of items. And on some, they have also been waived off. The five slabs divided by the council are 0%, 5%, 12%, 18% and 28%.
The items under the 0% tax category are fresh meat, juice, butter, curd, natural honey, eggs, fresh fruits and vegetables, bread, stamps, judicial papers, printed books, handloom, certain stationery items, Khadi products and the likes. One can find a more detailed and inclusive list online. And ensure with this information that you do not succumb to false means and payments. Also, ensure that you only seek a GST bill whenever purchasing anything from a store. You may feel you are paying extra and that is what the merchant might induce. But remember you are benefitting in the long run whereas they are simply trying to evade tax.
This is being commonly seen where vendors ask for cash options and deny card payments. And when forced for a reason they evade with reasons that as a customer they would have to pay extra of tax percent is levied on the item. But remember to be a responsible citizen in abiding by the rate laws as a customer and a merchant.