GST is one Indirect tax and replaced Central and State taxes. Now what are these taxes?
Central Tax consist of Central Excise duty, Service Tax, additional Excise duty, Custom duty whereas State tax consist of MVAT (Maharashtra Value added Tax), Sales tax, Entertainment Tax, Octroi Tax, Tax on Lottery, betting and Gambling.
Hence, GST referred as Uniform tax for the whole nation. Basically there are four tax slab under GST i.e. 5%, 12%, 18% and 28%. We will see these tax rates in details. 5% tax on items like Skimmed milk powder, Branded Panner, Frozen Vegetables, tea, coffee, Pizza bread, medicines, kites, Revenue stamps and 5% tax on services like Rail & Air transport, restaurants.
The second lab which is 12% charged on items like frozen meal products, cheese, ghee, butter, tooth powder, umbrella, cell phones, and notebooks whereas GST on services like Non AC Hotels, Business class air ticket.
18% GST levied on items like Biscuits, Sugar, Pasta, Cakes, James, Ice creams, Mineral Water, steel Products, Mixers, tissues, Camera, Speakers and Monitors. It has been observed that you will get most items covered under this slab of GST. GST under 18% charged on services like telecom, IT, Garments, Financial services, Room tariffs.
At the end GST of 28% charged on goods like Wafers, paint, deodorants, washing machine, ATM, Vending machine, automobiles, motorcycles however GST on services like Cinema, 5-star hotels, private run lotteries .
In order to conclude this brief article on GST, I want to add few things as we know that there are two side of every Coin like ways the GST has two faces for the country. On some goods there is absolutely no tax like fresh fruits, milk, eggs, Flour, besan, fish, Chicken, fresh meat which is beneficial for every individual. I believe GST is one the tax reforms in the country.
Hope, This article give us brief understanding of GST.
ONE COUNRTY ONE TAX – GST