GST launched in India: A look at tax rates and how it will impact your basic expenses
The GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses.business Updated: Jul 06, 2017 09:58 IST
India is all set for its most ambitious reform in decades, which is expected to transform the world’s fastest growing major economy into a single market for the first time. The long-awaited Goods and Services Tax (GST) rolls out Saturday even as businesses complain they are ill-prepared for the massive changes about to ripple through India’s unwieldy $2 trillion economy. (Dibyangshu Sarkar / AFP)
In the making since 2000, the Goods and Services Tax (GST) comes into effect from July 1.
Touted by the government as the biggest tax reform since Independence, the GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses.
In these 17 long years, GST has undergone several conceptual changes to finally emerge as a multi-rate tax structure, which economists believe will undermine the advantages that a simple-structured, uniform indirect tax would have affected.
Foodgrains, cereals and vegetables have been zero rated under GST, other rate slabs are 5%, 12%, 18% and 28%. A cess will also be added to certain sin and luxury products.
Here is a look at the different tax rates and how it might impact you:
* This is the cess that will be applicable on cars