July 1 st 2017 marks the beginning of GST or The Goods and Services Tax in India. Regarded as a historic and revolutionary reform in the taxation system of the Indian Economy, it is a comprehensive indirect tax on manufacture, sale and consumption of goods and services in India.
What are the benefits of GST?
It is expected to unite various markets in India, thereby reducing the time and cost on the movement of goods.
It lowers the burden of tax on industries while ensuring an increase in revenues for the government.
Reduces the amount of time and paperwork required to pay taxes.
It can boost India’s GDP between 0.9% to 1.7% on a long term basis.
Reforms in various sectors of industry and trade can potentially increase exports between 10% – 14%
Items to get cheaper with the introduction of GST:
Items to become more expensive with the introduction of GST:
Banking and Insurance services
Personal Care items
How GST will impact your Health Insurance premium:
The Cost of Health Insurance Premiums is set to rise by 3%! The current rate of interest you pay on your Health insurance premium is 15% and Post-GST; it will increase to 18%.
The future of India looks bright as it is on the verge of a massive economic reform. Though the prices of most of our everyday items will change, it seems to be for the better as India’s economy will grow in the long run, with the introduction of the Goods and Services Tax.