GST Impact on Common Man

by Paras Mehra 5.75K

Introduction

Indirect taxes are born by the ultimate consumer of goods or services and hence, there is no denying fact that GST will impact every single person in India. Common man can be categorised into three classes;

Let us assert the impact on the aforesaid classes.

However, GST implementation will have a favourable impact on this category of population. People in this category are starving for basic facilities, and these basic facilities have been kept out of GST bracket.Further, goods of mass consumption have also been kept under a marginal bracket of 5% tax rate.This is a welcome step by the government of India.

These categories of class have the same reason to smile as category I people have. The goods of basic necessity and goods of mass consumption will attract no or marginal tax rate. Hence inflation will further comes down ultimately giving more power to the people.
Further, this category also consumes some basic luxury products which are currently taxed at 30 to 31%. These set of products will also get cheaper as they will attract 
tax rate of 28% and removal of cascading effect will further cut down the cost of production resulting from price fall.Hence, they also have the reason to cheer.

As said, as per the GST tax structure, the luxury will be taxed at the highest rate of 28% which may further increase by levy of cess on sin and energy.
In the end, the paradigm shift in the history of Indian taxation 
bring hope of millions of poor and middle class people in India.

Conclusion

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