Similar to coin goods and services ax has both pros as well as cons:-
Advantages of GST:-
- Removal of bundled indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise.
- Online simple process for taxation including registration and tax filing.
- Regularizing unorganized and organized business.
- Lesser compliances.
- Increased demand and consumption of goods.
- Boost to the Indian economy in the long run.
Disadvantages of GST:-
- Some Economist say that GST in India would impact negatively on the real estate market. It would add up to 8 percent to the cost of new homes and reduce demand by about 12 percent.
- Some Experts says that CGST(Central GST), SGST(State GST) are nothing but new names for Central Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax layers.
- Some retail products currently have only four percent tax on them. After GST, garments and clothes could become more expensive.
- The aviation industry would be affected. Service taxes on airfares currently range from six to nine percent. With GST, this rate will surpass fifteen percent and effectively double the tax rate.
For the Common Man – Items Expected to Get Cheaper
- Prices of movie tickets may become cheaper in most states
- Dining in restaurants
- Entry-level sedan (except small cars)
- SUVs and luxury or premium cars
- Washing machines
For the Common Man – Items Expected to Get Costlier
- Mobile bills
- Renewal premium for life insurance policies
- Banking and investment management services
- Basic luxuries for a common man like WIFI and DTH services, online booking of tickets may become costlier.
- Residential rent
- Health care
- School fees
- Courier services
- Commuting by metro or rail may become expensive.
- Aerated drinks
- Cigarettes and tobacco products