While the Indian Government is working tirelessly to bring new reforms in the tax system of the country to remove the complex tax system and set a common nationwide market rates for tax, the common men are worried about the effect the new system is going to have on their lives. To cut the things short, GST is going to have a mixed effect on the daily needs of the people with some things getting cheaper and some getting costlier. The GST rates are assumed to differ from a common man to a rich person.
- Eating Out
Under the GST system, it is expected that the rates would fix to 18 percent or above. So, if one wishes to eat out, it would certainly be going to cost them more. As under the GST, states will now have the services under their control.
- Phone Bills
The tax rates on telecom services are going to get higher. As a result, the customers would have to bear the burden. Currently charged at 15%, it is going to touch 18%. One must be ready to see a rise in the rates of internet packs and call rates.
- Readymade Garments
The readymade clothes and fashion brands will get cheaper as the effective excise duty are expected to get decreased.
- Car Buying
With the new system, it would be easier as well as cheaper for a person to buy a car. The current excise duty on cars is going to be decreased and will overall decrease the price.
- Buying a Phone
The currently charged rate of duty and VAT sums to 12.8%. With the GST at the doors, one can expect rates go higher up to 18 percent, which will make the buying of cellular phones costlier.
- LED TVs and other Electronics
Under the current tax, regime customer pays nearly 25-26 percent more than the production cost due to VAT and excise duties. So, when GST hits the nation, and the rate goes down to 18 percent, people can expect a decrease in the rates of such goods.
- Online Buying
Buying of bags, shoes, electronics online will be getting expensive as the e-commerce industry will fall in the new tax system and will be paying tax deducted at source for every purchase. So, as the result of which one can expect a low tax rate on online shopping.
The GST when completely implemented will be going to affect the common men. For a businessman, GST will come knocking your doors whether one accepts it or not. Businessmen will not have to deal with many tax offices which will be a relief. On the other hand, it will be applicable on all the expenses. The single tax system will be applicable wherever one wishes to go. The prices may rise or fall of various commodities depending upon the rate of GST for which we will have to wait and see that what comes next.