GST: How Gst will effect your life and What is GST all you need to know

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• President Pranab Mukherjee and Prime Minister Narendra Modi at Parliament on Friday night launched India's biggest tax reform since independence.. After the change in the rule of Goods and Services Tax (GST) on Friday night, India has changed the largest tax system in its history. This is not only a improve in the tax system but it will also bring a big change in the federal system of the country...

• WHAT IS GST ?

  • In the present system, in every stage the Central Government and the states are taxed at different rates, at the full price of the goods. But under the GST system, the value added in each phase will be taxed only, in simple words it will be a single tax,according to business standard report The Goods and Services Tax (GST) is a uniform indirect tax levied on goods and services across the country. GST, as an umbrella tax, will replace central taxes like central excise, service tax, additional duties of excise & customs, special additional duty of customs, besides cesses and surcharge, on supply of goods and services..
  • there are two types of taxes in India indirect taxes and direct tax system.. GST is a destination based tax

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NOW WHAT IS DIRECT TAX AND INDIRECT TAX-

• Direct tax is an example of income tax where you earn income and you are liable to pay tax on it alone. In the case of indirect taxes, the liability of tax can be given to someone else. This means that when the shopkeeper has to pay VAT on his sale, he can give the liability to the customer. Therefore, in fact, the customer pays VAT along with the value of that item so that the shopkeeper can submit the VAT to the government. This means that the customer should not only pay the price of the product, but also the tax liability, and therefore, when he buys an item, he gets a high value

COSTLIER UNDER NEW GST SYSTEM-

• as per some source now banking services, insurance premium payments and credit card bills etc will cost more Under new GST system, AIR fare for business class, bikes which have more than 350 cc, train Ticket, washing machine, TVs, refrigerator, five star hotel Restaurant online ticket booking, real estate, mobile bills, broadband services

CHEAPER UNDER NEW GST SYSTEM-

• Air fare for economy classes, personal care products, auto and bikes which have below 350 cc engine, movie tickets which cost less than hundred, and Unpacked food Grains, fresh vegetables, foods, fruits will be cheaper because these items have been exempted from tax under GST. Many of the processed foods that reduce by 5 percent will also be cheaper.
• GST rates on goods and services have been broadly classified into four taxes: 5 percent, 12 percent, 18 percent and 28 percent. there are Three types of GST - IGST, CGST, SGST,