With the revolutionary tax bill, GST passed by both the houses of Parliament, India’s biggest and revolutionary tax regime GST is all set to hit the ground running. With the claims of it becoming a revolutionary tax reform post-independence, it is expected that it will cut down on certain costs by introduction of an amalgamated tax system responsible for boosting economic growth in the long-run.
With speculations running high that GDP would certainly increase the GDP by almost 200 basis points, the reform in its total might just emerge as a mixed bag for the common man.
Taking the discussion forward about its impact in the long-run, GST would certainly lead to beneficial results for most of the sectors. On the other hand, it is also expected to create an inflationary pressure on the economy as the prices of some luxury goods and services are expected to surge higher. But, this is also expected to run its course with certain measures that would be taken by the Government.
With the use of an accurate GST tax calculator, it is expected to lead to a reduction in costs for a majority of the goods that are supplied to the end-users in the long-run. It is also important to keep a tab on various resources as it would enable the common man to know all about GST.
Let us have a quick overview of what GST would mean to a common man:
With the implementation of a unified tax structure, it is expected that basic luxury items such as Direct to Home Services, mobile phone bills, investment management and banking services, life insurance premiums and online ticket booking services are expected to soar even higher.
Business entities with robust GST tax calculator have said that the prices for certain essential services are also likely to go up in certain areas such as rental residence, healthcare facilities, commuting via rail/metro, courier facility and the school and education fee for students is also expected to surge even higher.
Certain tax professionals whowant to know all about GST have stated that some of the services might also see a drop in price for many of the states. With the amalgamation of entertainment tax into GST, movie tickets will surely get cheaper in majority of the States across the country.
Apart from this, prices at various mid-range fine dining restaurants are also expected to become pocket-friendly in many of the States.
Prices of certain low and medium-range vehicles are also expected to witness a drop in price. With the implementation of GST and current supply chain ecosystem, the prices of two wheelers, Luxury SUV and premium cars and entry level Sedan cars is also expected to take a dip.
As per the current landscape of supply chain and other related indirect taxes, an average common man can only expect a marginal impact on certain while goods such as washing machines, stoves, toothpastes, shampoos, soaps and television sets.
As per the calculations derived by precise GST tax calculator, prices of tobacco products and aerated drinks are also expected to go higher. The Government of India has had a stern outlook towards tobacco products that are injurious to health. These items will fall under the tax slab of 28% and additional charges will also be levied leading a steep rise in their prices.
While the number of forecasts mentioned above is based on certain statements and data released by the top officials of Government authorities, it is recommended to wait for the final word by the GST council and the Government should also release in the coming days. But, the enablement of anti-profiteering and other measures that have a counteractive approach, it is expected that GST will certainly be able to keep a tab on the costs incurred. This will apply to most of the goods and services and the common man would certainly stand to gain despite tough times.