The Goods and Services Tax is something that many are viewing with trepidation. Buyers are expecting to have to pay more for things they buy, vendors apprehend that the tax filing structure will be complicated and tedious and that sales will fall because of higher prices. Meanwhile there are those that are offering pre-GST sales as well. Here’s some information that should help:
Traders have been protesting against the levy of tax on branded staples and also went on a one day strike against this on Thursday. One of the grouses they have is that traders will have to file as many as 37 income tax returns every year.
While experts acknowledge that GST will cause heartburn to traders who have been evading tax and that there will be some inconvenience to the common people to begin with, it will be beneficial in the long run.
We transition to the GST for taxation on 1st July 2017. The government has indicated that they will be lenient towards the business and trader community in the days following the rollout and give them a chance to understand the nitty gritty; condoning honest mistakes.
Details with regard to e-way bills, taxation of lotteries, transport of goods across state lines, online grievance redressal systems, ways to disseminate information including a Twitter handle are being hammered out now before rollout.
While various numbers about increase in taxes for essential goods and services are being cited, LPG is set to become cheaper. According to a statement from the Finance Ministry, items such as curd, natural honey, cheese, tea, spices, wheat, rice, cooking oils, some packaged foods and so on will become cheaper.
Builders have been warned not to fool buyers by saying that the 12% tax meant for builders is payable on the original cost of the building. Currently some builders are asking buyers to pay entire amounts before 1 July (at the current 5.5% tax rate); in the alternative pay at the increased rate afterwards.
The GST will be higher on charges relating to vehicle loans and so borrowers will find that the overall price of the automobile may rise.
Many merchants are looking to clear existing stocks before the rollout of the new tax. So currently its raining deals on items from iPhones to cars. White goods such as TV, fridge, washing machine and A/c's could be available for discounts up to 20 to 40%. Chains such as Kohinoor and Vijay are currently offering massive discounts. Good deals are currently offered on vehicles as well; from bikes to large cars. You may also want to check out discounts currently being offered in stores and online on branded clothes.
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