GST roll-out in India; here is what people say
GREATER NOIDA : The biggest tax reform in the history of independent India rolled out today. The ambition tax reform subsumes around a dozen central and state taxes that are currently levied on goods and services. GST is expected to add 2% to the country’s current GDP.
The way trade and commerce is done in the country will see major changes. Majority of the people are waiting to see how it will affect the market. A commoner is facing chaos as speculations are being made regarding the increased cost of living that GST would cause. On the other hand, some are very optimistic. Here is what people say:
Puneet Sharma, Owner of several big brand garment stores is excited about the new law. “Though, it included a lot of hassle, but in the long run,” he says, “GST is going to be beneficial for the economy of our country and every citizen will eventually be a beneficiary, for good.”
Lalit Kumar, runs a mobile phone store and he, like majority of the population, is waiting to see how the new tax law impacts the markets. “There has been no significant change that we have had to make. We have completed all our formalities and we wait to see its affects,” he says.
There is significant number of business houses who were caught unprepared for the roll out of new law. “The authorities should place a mechanism through which commoners could be taught about the law that uses more technology,” says manager of a retail store, wishing anonymity citing his company policy.
Under the new system, the restaurants are broadly divided into two areas: non-AC and AC restaurants. Dining out in air conditioned restaurants will attract tax of 18 per cent as against 10.6 per cent charged (including VAT and service tax) now. For low-cost restaurants, the tax rate would be 12 per cent as against 6 per cent now. Non-AC restaurants will charge 12 per cent GST on food bill. 5-star hotels will be even more expensive as the GST rate will be 28 per cent.
Restaurants with Rs 50 lakh or below turnover will go under the 5 per cent composition. Moreover, it will also make it easy for the restaurants to take credit of input goods and services consumed while providing restaurant services. It is expected that GST will marginally lower the overall tax rate however, till the time the final GST rates are announced for this particular sector, no conclusion can be derived out of it.
Puran Dutta, a restaurant manager says that he is yet to see how GST will affect his business. “I hope it to make us happy than tense,” he smiles.