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What will be the effect of GST on Consumers.
01-May-2023 (In GST Law)
I want to know after the GST is comes into force, how will the wallet of an ‘aam aadmi’ like me be affected by it?
Realistic advantages and disadvantages of GST for a general consumer:
- According to Government estimates, the biggest benefit of GST for the average citizen is a reduction in the overall tax burden on goods.
- Small taxpayers with an aggregate income of under INR 10 Lacs in a financial year would be exempt from paying GST. The threshold for the N.E States and Sikkim is INR 5 Lacs in a FY.
- For most goods, the rate of indirect tax levied is pretty high. This means that consumers end up spending more on goods and services such as consumer electronics, beauty products, non-luxury automobiles, etc. by way of excise duty (12.5%) and VAT (12.5% – 15% depending on the State). Sometimes customers also pay multiple taxes or cascading taxes at each stage and that’s one substantial tax charge to be paid by the time the good or service has reached the end customer.
- The rate of tax on certain goods and services (edible oil, textiles, low-value footwear, etc.) will increase as well. The proposed GST slab will cause the tax rates for these goods and services to be higher for the final consumer.
- GST removes the multiplicity of taxes compounded through several different taxes levied by the Center and the State by combining all previous taxes into a single Goods and Service Tax or GST.
- It is important to note that the following goods and commodities will not fall under the purview of GST are:
- Alcohol for human consumption
- Petrol and petroleum products (motor spirit, crude petrol, etc.)
- High-speed diesel
- Aviation turbine fuel
- Natural gas
- Electricity
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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