The much awaited revolutionary reform in the Indian Taxation system has further intensified the notion of adapting periodical changes in every aspect thereon. The Goods and Service Tax has created equal opportunities as far as the accounting for GST is concerned. The GST council has been formed for administering this newly implemented tax in the country. The two day meeting of the GST council made it very clear by declaring the tax rates that the same will be in the public domain with the introduction of GST.
COMPLETE GOODS AND SERVICE TAX RATES GUIDE BY MY ENTRY ACCOUNTING SOFTWARE
The announcement of GST rates created another surge of curiosity in the whole country across all the industrial and trade sectors. Evaluating one’s position due to the implementation of GST is natural and the same prevailed in the country after the announcement of GST rates. There was bit confusion in the initial days but as of now these have been successfully executed. To eliminate any such dilemma, let’s discuss the newly implemented GST rates in the country on a number of commodities.
The GST slabs are pegged at 5%, 12%, 18% and 28% thereon. The GST Council in their latest press release declared a list depicting certain class of commodities and their respective rates under the newly introduced Goods and Service Tax.
> Let’s first discuss the class of commodities that remained unaffected by the implementation of GST. The list of such items with 0% GST includes:
- Unpacked Food grains
- Unbranded Natural Honey
- Fresh Vegetables
- Unbranded Wheat Flour
- Palmyra Jaggery
- Health Services
- Educational Services
- Butter Milk
- Children’s drawing and colour books
- Gram Flour
> Next comes the list of items bearing GST at the rate of 5%. The list of commodities under this head were disputed upon by certain public welfare groups saying that it has led to inflation that will disrupt the future economic condition in the country. This list includes:
- Packed Paneer
- Edible Oil
- Domestic LPG
- Cashew Nuts
- Life Saving Drugs
- Skimmed Milk Powder
- Indian Sweets
> The recent inflation rates were high as a result of such implementation as argued by some sections in the society. The implementation of GST on these commodities is demanding improved software for the accounting of GST in an organised manner per se.
> The 12% tax slab of the GST includes major items, particularly the expensive ones. No doubt, prior to the imposition of GST a number of these items were subject to different types of taxes; but the traders are of the opinion that their profitability has gone down significantly. The list of such items includes:
- Processed Food
- Fruit Juice
- Packed Coconut Water
The next tax slab is very common to almost all the daily items including some of the necessities which is in great trend at present. Class of goods with 18% GST rate can be witnessed easily at all retail shops with the same print rate all over India. The list of items bearing 18% of the GST is as under:
- Hair Oil
- Corn Flakes
- Capital Goods
- Ice Cream
- Industrial Intermediaries
These items became a bit costlier than the previous rate but the Government is of the opinion that the GST rates have been fixed, keeping in mind the best possible service to the people together with high revenue generation for the growth of country.
> Last slab announced by the GST Council was the need of the hour. The previous practice of imposing the same rate of tax on toothpaste and luxury items was a matter of great concern indeed. So making the luxury items costlier by imposing 28% tax rate is a positive step by the Finance Minister in this very year. These luxury items comprised of:
- High end Motorcycles at 15% cess
- Consumer Durables such as AC and Fridge
- Luxury cars like BMW
- Aerated Drinks and Cigarettes (Excluding Beedis)
The overall scenario of the recently introduced Goods and Service Tax can only be forecasted at this point of time. The tax rates discussed above may be modified in the public interest as and when required. The GST Council is acting as a watchdog of the economy in present times to evaluate the the performance of GST as a whole. The notification of rate structure for certain group of commodities may be altered owing to the social pressure on the Government in the long run. Proposing a single tax for the whole nation is undoubtedly a positive approach towards the growing economy of India.
GST is a combination of couple of taxes named as the SGST, CGST and IGST which has impelled a substantial change in the taxation policies of a large number of organisations in the country. Nevertheless, this change can be easily addressed with a notable adoption of personalised GST software. Adoption of such accounting software for GST would sort out the initial difficulties while following the compliances in the latest reformed tax structure.
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