By all accounts, many essential things supposedly 50% do not come under the direct purview of much-talked GST. This structure has been preserved to keep inflation far from items of daily use. But is that actually taking place? No, absolutely not. If eggs, vegetables, bread, salt, and other items are safe from the tax net, the rate of these items shoots up due to obvious reasons like the hike in transportation charges covered with the porous net of Goods & Services Tax that has been creating a fresh collection record every month.
Theoretically, the government expertly produces the picture of no tax on essential items, but it collects levy indirectly. Despite all the corrective moves taken to control the prices of onion, potato and other vegetables in the big or small market, the consumers are purchasing potato at Rs 40 per kg, onion at Rs 55, other vegetables at around Rs 40 to Rs 60 in Jajmau, a suburban part of Kanpur Nagar.
The mind-boggling rates of pulses have led the common people to stay away from the intake of Arhar Dal. What a welfare if a government pulls away essential consumption food items from their daily budget basket! They curse, nonetheless, the indirect taxes which are tricky as well as deceptive. The point at which a tax is levied and where it is felt are incompatible. That’s why when GST is levied on trucks, increase in its price is felt in the price of common commodities even though they have zero tax.
It is like the tremors which are strongly felt in its epicentre, but the effect goes beyond in much farther areas. In the same way, the economists plan decently to dupe the common public through the lollipop of zero tax. But they continue to realise the effects of indirect taxes till the last day of their mortal existence.
If a doctor sucks the little amount of blood for the test, that quantity of blood never returns to the human body instantly; the indirect tax creates the complex condition to extract all the currency notes from the pocket instantly. Inflation is seemingly an inescapable effect of indirect tax in economics parlance. One portal the Wire writes: “GST is felt even on those items which have zero tax and inflation is experienced even by the common person who consumes very little of the taxed items.”