In a biggest tax reform, Goods and Service Tax (GST) Bill was approved by Rajya Sabha for a single unified value added tax system to turn the country into world's biggest single market.
Best Advisory Company provides free
stock market news updates and trading advice to invest in stock and commodity
market, so investor earn more profit through accurate calls.
Setting a target of April 1, 2017 for rollout of the Goods and Services Tax, the government today unveiled a detailed roadmap for its implementation and said it is aiming for an optimal rate of taxation though the final decision will be taken by the GST Council.
Costlier: Cigarettes, aerated beverages, pan masala and tobacco and tobacco products may get costlier if sin or demerit rate of 40 percent is applied in these products.
Branded clothes: Branded clothes may get expensive as tax on branded apparel is likely to go up.
Phone bills: Mobile phone bills may get expensive as service tax gets dearer. Currently, telecommunication services are subject to service tax of 14 percent, which could increase to 18 percent under GST. We expect telecom companies to pass on the increased tax burden in case of postpaid subscribers.
Cheaper: Small cars, two-wheelers and commercial vehicles: At an 18 percent GST standard rate, the on-road prices for two-wheelers/small cars and SUVs would be 5-10 percent lower than the current.
Soaps, Shampoos, detergent: FMCG products may become cheaper as these bear around 25 percent indirect tax rate which may likely come down.
Cement: Cement may get cheaper benefitting from lower effective tax rate under GST and savings in logistic costs.
Movie tickets: Movie tickets may get cheaper due to lower tax rate
Set Top Box: Tax rate for the sector is expected to decline. Special additional duty on imported equipment (mainly set-top boxes), which currently adds up in the capex cost, will get subsumed under GST and lower capex cost.
No comments:
Post a Comment