GST Bill Passed in Lok Sabha! What to Expect Now?
The most awaited Good and Services Tax regime has now come closer to its implementation from July 1, 2017, after getting passed by the majority in Lok Sabha resulted after a long debate. Finance Minister, Mr Arun Jaitley said, “GST, which will usher in a uniform indirect tax regime in the country, will make commodities "slightly cheaper". You too must be waiting for this reform in the Indian taxation regime, and now your wait is all over.
Let us take a glance at the major features of the GST and how it will impact the Indian economy as a whole:
- The four bills which are passed in the Lok Sabha on March 29, 2017, include the Central GST Bill, 2017, the Union Territory GST Bill, 2017, the Integrated GST Bill, 2017, and the GST(Compensation to States) Bill, 2017 after denying various amendments hosted by the opposition parties.
- As per the view of FM, Mr Arun Jaitley, the rate of GST will be based on the person who is using the commodity, i.e., whether the product is being used by the rich person or a common man.
- It has been believed that once GST is implemented, the persecution of businesses by various authorities will come to an end, and India will become one rate for one commodity across the country.
- There was a demand for a uniform tax rate for all the products and for that FM explained that some good are the necessity for the poor and having one rate for all goods will make the necessary commodities expensive.
- It is expected that GST will bring real estate under the ambit of the new regime within one year of it’s rollout.
- The impact of GST will make the goods cheaper by removing the cascading effect wherein people pay tax on tax making the products highly expensive. The food products will be covered in the zero-rated tax bracket only, and all other commodities will be brought in the nearest tax rate.
- The tax rate recommended by the GST council are 5, 12, 18, and 28 percent where the highest rate is for the goods which are categorised in the luxury and demerit goods.
- As GST will subsume various central and state-level indirect taxes like VAT, Sales Tax, Service Tax and other local levies, it has been believed by the experts that after its implementation the GDP growth rate will boost up to 2%.
- The anti-profiteering provisions in the bill are meant to make sure that the rate-cut benefits for taxes are passed on to the consumers, and there must not be any “unjust enrichment”.
With these major announcements regarding the passage of GST Bill in the Lok Sabha, it can be concluded that this would not only be a game-changing reform of taxation in India but will also bring cooperative federalism between the state and the central government.
So now when the country is moving towards growth and development and expected to reach its targets sooner, don’t you want to be a part of the success? As the GDP will grow, it will surely bring positive changes in the overall market conditions giving rise to higher growth opportunities for the investors. So before you lose the chance of making more money, you must begin your mutual fund investments online right away.
MySIPonline is the perfect platform for investing in the mutual funds in India, and you must avail our free investment and advisory services to make your future financially secure and grow higher with the growing economy.
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