One Country One Tax concept has been passed in the Indian parliament. Goods and Services Tax (GST) will be enforced from the coming financial year starting of 2017- 2018.
Under the chairmanship of Union cabinet minister Arun Jaitley, the decision to implement a single tax rate for the goods manufactured and sold in the country is being decided.
The uniformity in the tax rate will make the goods sale price uniform in the entire nation. The GST is rolled out with a structure proposal of 4-tier method.
A common man is likely get benefited. As a result of the new GST proposal will nullify the variations in taxes on various items.
Major items that become cheaper are the kitchen staples. Items like edible oils, spices and chicken would now become cheaper.
Apart from those some of the consumer durables prices like televisions, air conditioners, fridges and washing machines may also become cheaper.
The union government plans to implement the new indirect tax regime from April 1st 2017. Goods and Services Tax (GST) implementation is accepted by all the respective state governments at a meeting held this week.
The Centre has recently proposed a four slab rate of GST for the share of state governments. 6 % is the lowest rate proposed along with the standard rates of 12 % and 18 %, and 26% as the peak rate.
FMCG and consumer goods will have the highest rate of 26 % GST. A proposal to levy an additional cess on demerit or sin goods and polluting items is under strong consideration.
Besides, the cheap goods some of the goods might become costlier for the common man. Normal food items like Spices, Turmeric, jeera, black pepper, oil seeds, refined oil, mustard oil and groundnut oil will pinch the house wives with the cost.
Another daily (mostly) usage items like toiletry items, Perfumes, shaving cream, powder, hair oil, shampoo, soap will become costlier. Luxurious Electronic items like high end TVs, air conditioners, washing machines, inverters, refrigerators, and electric fans will have to bear the top rate of GST.