{"id":1805,"date":"2017-06-19T06:56:39","date_gmt":"2017-06-19T06:56:39","guid":{"rendered":"http:\/\/www.matchboxindia.com\/?p=1805"},"modified":"2021-03-20T07:11:42","modified_gmt":"2021-03-20T07:11:42","slug":"gst","status":"publish","type":"post","link":"https:\/\/matchboxindia.com\/blog\/gst\/","title":{"rendered":"GST \u2013 Impacts and Implications From July 1, 2017"},"content":{"rendered":"
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One of the main objective of Goods & Services Tax(GST) is be to eliminate the double taxation i.e. cascading effects of taxes on production and distribution cost of goods and services. Introduction of a GST to replace the existing multiple tax structures of Centre and State taxes are not only desirable but imperative. Integration of various taxes into a GST system would make it possible to give full credit for inputs taxes collected. GST, being a destination-based consumption tax, is based on VAT principle.
\nThe Goods and Services Tax (GST) has been finalized for almost all items by the GST Council. The council revised tax rates for 66 items. Most of the goods and services have been listed under the four broad tax slabs \u2013 5%, 12%, 18% & 28%. However, some items like gold and rough diamonds have exclusive tax rates. Also, some items have been exempted from taxation. The new GST regime might well affect your personal budget with quite a few goods and services getting cheaper or dearer.
\nFor the advertising industry<\/a><\/span>, GST provides for a 3% increase in service tax, from 15% to 18%. Without commenting on its merits\/demerits, MATChBOX, a leading advertising agency of Indore<\/strong>, brings out the list of goods and services and their respective tax slabs:
\nTax Exempted<\/strong>
\nGoods
\nFood Items<\/strong>: Fresh meat, fish, chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits & vegetables, flour, besan, bread, all kinds of salt, jiggery & hulled cereal grains.
\nBeauty Products<\/strong>: Bindi, sindoor, kajal, palmyra, human hair and bangles.
\nBooks\/Stationeries<\/strong>: Drawing or colouring books, stamps, judicial papers, printed books, newspapers.
\nOthers<\/strong>: Jute and handloom, bones and horn cores, hoof meal, horn meal, bone grist, bone meal, etc.
\nServices
\nGrandfathering service.
\nHotels and lodges with tariff below Rs 1,000.
\nSpecial Tax Rate<\/strong><\/p>\n