International Journal of Financial Management and Economics
Vol. 2, Issue 1 (2019)
How the GST rates will affect your money?
Dr. G Suresh Babu
Reforms are a continuous process as and when a new reform or bill comes and a new law is imposed, it surely leaves its impact especially on the common man. It is ultimately the common man who is directly or indirectly affected by the implementation of any new tax. GST or Goods and Services Tax as the name implies, it is an indirect tax applied both on goods and services at a uniform rate. A single form of tax known as GST has applied throughout the country. Goods and Services Tax (GST) – A new law, a new tax will bring with it new challenges to face that need to be tackled with utmost care. The GST bill covers the goods and services tax and shall be the biggest indirect tax reform providing a uniform and simplified way of indirect taxation in India. After a lot of deliberation the GST council has finalized the rates for all the goods and major service categories under various tax slabs. The tax rate under GST are set at 0%, 5%, 12%, 18% and 28% for various goods and services and almost 50% of goods & services comes under 18% tax rate. A bundle of indirect taxes will get replaced by GST. But how is our life going to change post GST? and also to see how GST on some day-to-day good and services will have an impact on an end user’s pocket. Through this article, let we see how GST will affect our daily lives as citizens of this great democracy. Though it is called as ‘Good and Simple Tax’, it is noteworthy that instead of one single GST rate, variety of goods and services will be taxed at different rates. As there are several tax rates, we need to see if it would really make our life simple. This paper sets out to analyze the effect of the impending implementation of Goods and Services Tax (GST) in India and its impact on common man’s budget and affect consumers’ money.