GST IMPACT ANALYSIS ON VARIOUS SECTORS OF ECONOMY :
GST is proposed to claim one nation one tax system but what one sees is that the effect of this on various industries will be different. These can be categorized as follow:
- Effect based on which slab the services or goods fall into.
- Effect based on industry type (i.e.,) whether the industry deals with manufacturing, distributing, and or retailing or providing of services because the GST rates for goods and services are different.
But a common man who is the final consumer has only one question in his mind as which are the products that would increase his expenses and which are the products that would help him save big under GST regulated bazaar. But let’s first learn about the GST Rate Slab pools and also analyze as why these are stacked as 0%,5%, 12%,18% and 28% (i.e., nothing but GST rates item wise)
Well, there are numerous articles in circulation listing GST rates item wise but what one has to magnify onto is that what could be the possible impact on business sectors taken individually. Let’s assemblies this by taking any two sectors for a study:
0% GST Rate | – Farm products, dairy products, vegetables, fruits etc., |
5% GST Rate | – Branded, packed foods, spices, medicines etc., |
12% GST Rate | – Frozen foods, animal, and vegetable fat oils, tobacco etc., |
18% GST Rate | – Capital goods, intermediate items used industries |
28% GST Rate | – Govt classifies these goods as white goods like (washing machines, air conditioners, soaps and detergents, refrigerators, tobacco, tobacco products, aerated drinks, pan masala, luxury cars) |
Example 1: GST rate on Pharmaceutical Sector: Previous Regime-
GST Regime-
Example 2: GST rates on Auto Mobile sector: Previous Regime-
GST Regime-
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GST being split item wise, slab wise and rate wise is a creative infrastructure (a brain of bodies of individuals) will subsume very many taxes and provide us a single brick called GST to build prosperous and happy homes for generations to come. One can also brief oneself with articles relating to GST rates across different sectors like GST on automobiles, luxury items etc by visiting official pages from accounting software companies example Tally, Reach Accountant etc., as these companies not only want to stick alone to provide accounting solutions alone but they also want to have the users latest information, to have a better understanding of the services provided by them by enriching the readers of information about GST.