With just a few hours left, India is bracing up in anticipation to embrace for the inauguration of one of the boldest taxation reforms of the country since independence, which will bring succumbing initial hiccups – the party is certainly over, but only for good.
All those gala clearance sales, flat 50-60-70% off hoardings looming all across the sideways of the urban roads of India, all the small and medium scale business running under-the-sheets with 18th century accounting systems, running far below the radars of Indian taxation laws – everything will be gone within just a few hours as the new GST regime is ready to roll out at midnight – 00:00 AM, July 1, 2017. The nation-wide Goods and Service Tax will come into effect from Saturday, we all know that. But let’s find out – who is in and who isn’t.
The GST event will be launched by President Pranab Mukherjee at midnight tonight at the Central Hall of Parliament and will be attended by top-guns like Vice President Hamid Ansari, Prime Minister Narendra Modi, Lok Sabha Speaker Sumitra Mahajan and former Prime Minister H.D. Deve Gowda. But the launch will be boycotted by the opposition parties including – the Congress, Trinamool Congress, RJD, DMK and the Left parties. The Samajwadi Party is still in dilemma of attending the event or not.
As of now, all States and Union Territories, barring Jammu and Kashmir, have endorsed their respective State Goods and Services Tax (SGST) Act. Jammu and Kashmir stands out from this because unlike other states, no Central law can be implemented in Jammu and Kashmir unless the State Assembly ratifies it. With the special provisions for the Valley, it has been excluded from the GST act.
About what gets cheaper, what gets costlier, what remains the same, here’s the whole list:
|Items||Current rate (%)||GST (%)|
|Tableware – Metal||11||18|
|Revised% for spoons, forks, ladles, skimmers,ke servers, fish knives, tongs|
|Tableware – Wood||18 and(|
|Tableware – Plastic||18|
|Kitchenware – Metal||11-20.5||18|
|Revised% for Spoons, forks, ladles, skimmers,ke servers, fish knives, tongs|
|X-Ray Apparatus (for medical,ntal & veterinary)||17.5-27||12|
|Footwear (below Rs.P0)||14.41||5|
|Readymade garments (below Rs.00)||5-6||5|
|Readymade garments (above Rs.00)||18.5||12|
|Biscuits (Less than Rs.0/kg)||11.89||18|
|Biscuits (Above Rs.0/kg)||16.09||18|
|Baby food (sold in unit containers)||7.06||18|
|Smallrs (25-2728+1 (cess)|
|Smallrs (25-2728+3 (cess)|
|Mid-segment (<1500)||36-40||28+15 (cess)|
|Cars with00 & larger engines||41.5-44.5||28+15 (cess)|
|Vehicles for transport with to passengerpacity (cannotconvertUTF82Char: error1 BE! considered as bus)||39-41||28+15|
|Motorcycles Engine >350||25-35||28+3 (cess)|
|Stationery (Paper)||12 and|
|Rates revised on following items from% to% – Exercise books and note books|
|Stationery (Pen/Fountain Pen)|
|Rates revised on following items from% to% – Eraser|
|Luxury items like yacht||25-27||28+3 (cess)|
|Music Instruments (Handmade)||0-12.5||0|
|Music Instruments (Other than Handmade)||25-27||28|
If the GST goes out like how it is planned and how it looks on stats and papers, it will implement a much more uniform and well balanced taxation regime. The party might be over for us, but it is just about to begin for the government as the GST will boost the lion’s share and also India’s sovereign credit profile. Let the hullabaloo begin.