Why GST could make the Common Man Suffer?

This post was written by: Vishal aaditya

GST came as a big surprise for many, as India being a country with many states and boundaries are at corner with a single product being priced at a different rate at different places.

A single price might look like a good idea, and GST is definitely has been given a thumbs up by many, but the loopholes are to follow with it.

There are going to be different levies at different stages, but the GST looks like to put in a lot of burden on the common man at the end.

The focus is going to be mainly on the indirect taxes, which are very probable to skim down slowly with the preparation of the GST, and once the Bill starts to being implemented.

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But, in reality the GST is not going to be a single tax thing, as it will be acting as a combination, which would have many taxes and cess included in it.

So definitely the rates are not going to be same too. Going by the government manifold, the GST Council has slotted down mainly a vivid four slab structure which includes 5, 12, 18 and 28 per cent.

Adding to that slab structure, there will be an another extra additional cess of around 12 to 15 per cent, which would be levied on the luxury and the sin goods, which would even include the luxury cars.

The main aim of the GST is to bring in a uniform rate of tax among all the states. But, the major backdrop was in the of the demerit goods, as it leaves the demerit goods with a wide chasm. The Sin tax are going to be levied on the products like tobacco, tobacco related goods and alcohol.

The present form of taxes (excise duty, service tax, customs duty and the like) are going to get merged into one, the central GST (CGST).

But, the other taxes like the sales tax, entertainment tax, VAT and the different taxes under State will get merged into the State GST (SGST). All the products for state to state deliveries, this would come under the inter-state deals, which would come under the Integrated GST.

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But, again they have kept out one of the most basic product, the petroleum products. Here comes a big game changer, which would likely be leaving a wide gap for the States and Centre.

For the petrol or the petroleum type products, the indirect taxes are going to be over 40 per cent, and the products which doesn’t come under the GST, the taxes would go up for them.

The Petroleum products will have higher levies in majority of the states, which would indirectly add up to the inflation when the crude prices may come down.

The GST is basically a consumption based tax, which would target the end, i.e the the final consumer.

But, with the levies being put up at different stages, this would finally burden the common man.

The multiplication of the taxes will be adding to the problems of the traders only which would only put pressure on the industries. At last, the rates on the individual goods are not going to be same.

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