It has been more than 40 days have passed since the implementation of GST. The industry has been frightened of its effect and the implementation process. However, the implementation process has been smooth. The question looms like a shadow – how it will affect the common people’s budget.
It is common knowledge that GST is that tax reform which the nation had been waiting for. Such a wave is sure to wash over both the businesses and the lives of the ordinary people.
The actual impact would befall upon the consumers in the form of price and GST rate. As per the impact of price goes, the services are said to become costlier at the inception stage. The price impact thus would be a mixed effect. The future is supposed to reveal a drop in the price as the taxation gets time to settle down. The benefit of GST too would be experienced by the ordinary people.
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The service tax has gone up to 18% while earlier it had been 15%. The hike of 3% would lead to price hike in the initial stage. The household budget is said to go up high due to this tax hike.
No impact on hotel bills would be felt by the ordinary people. Air travel would be same for the passengers of economy class. However, the business class flying would be costly.
Some gains can be expected from certain household items. Some would lead to disappointment no doubt. Implementation of GST would result in transparency in terms of tax payment. The tax reformation will turn the product based taxation to the consumption based taxation. The corporate houses would surely gain from the tax reformation once it gets time to settle down. However, the problem would rise with the ordinary people’s budgeting. It would take some time before the ordinary people can get the benefit of GST.