Understanding GST and impact of GST (Goods & Services Tax): ICSE / CBSE School project, college project.
What is GST
GST stands for Goods & Services Tax. The GST rollout by the government of India has converted India into a unified market of 1.3 billion people and in the process removed all the inter-state barriers with respect to trade.
Before GST was introduced, there were several issues with the indirect tax structure in India, such as:
- Multiplicity of taxes on Goods and Services
- Lack of uniformity in VAT structures across states.
- States were unable to levy taxes on services
- There was cascading effect of taxes
- Tax administration was more complex.
With the introduction of GST, all the central, state and local taxes have now been brought under a unified GST.
GST will help create a common Indian market and reduce the cascading effect of tax on the cost of goods and services. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system.
The long-term objective of GST is to eventually have “one nation, one market, one tax”.
Its important for everybody working in accounts and taxation to gain full knowledge of GST, to be able to do proper returns filing and refunds.
Impact of GST
Under GST, goods and services are taxed at the following rates 0%, 5%, 12%, 18%, 28%.
Here’s the impact of GST on items of regular consumption.
- Items of regular consumption such as Chocolates, coffee, refined sugar, Shampoo, Detergent and Beauty products (polishes and creams) become cheaper due to the lower GST rates on several items.
- A lower, uniform 5 percent tax was prescribed for all restaurants, both air-conditioned and non-AC.
- Products like Aerated water and beverages, perfumes became expensive due to a higher GST.
In general, as per the law of Demand and Supply, as things become cheaper there is more demand for those products. And if the product becomes expensive, the demand usually reduces.
Products of regular consumptions which attracted a lower GST came across a relief to the majority of the people in India as the prices of such commodities became a little cheaper.
However, products like aerated water and beverages became expensive, which is actually a good thing because such products are anyways not considered healthy. By adding more GST to such products, it will make the product more expensive and discourage people from consuming more aerated beverages.
Perfumes also became expensive due to a higher GST. However, since perfumes are used more by professionals and those with corporate jobs, they don’t mind paying a bit more for these as they regularly use perfumes.
References
Eating out, items of daily use get cheaper on lower GST
https://economictimes.indiatimes.com/news/economy/policy/eating-out-items-of-daily-use-get-cheaper-on-lower-gst/articleshow/61659855.cms
Here’s how GST impacts you in your day-to-day life
https://www.dnaindia.com/business/report-gst-impact-in-your-day-to-day-life-2543135
How will GST affect our day to day life?
https://www.quora.com/How-will-GST-affect-our-day-to-day-life
Math Projects on GST
Q. Goods and Services Tax. (i) What do you mean by GST? ,(ii) History of GST? How and when to existence. (iii)Types of GST, (iv)Current rates of GST, (v) Benefits of GST for the Economy of the country (vi) Benefits of the GST for the Consumer, Manufacturer. (vii) Prepare a sample bill for the items you purchase from a store. Find (CGST, SGST, IGST)whichever is applicable.
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