08/07/2017
* Clarity of Thought on GST by a Chartered Accountant * :
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1. Many TV channels and few intellectuals are posting the copy of restaurant bills to show GST has increased the bill amount.. this is absolutely untrue and wrong propaganda against GST..
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Taxes until 30th June -
14.5% VAT,
5.6% ST,
0.2% Swach Bharath tax,
0.2% Krishi Kalyan tax
20.5% Total Tax
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All these individual taxes have been done away with and has been replaced by a blanket tax of 18% now (still 2.5% cheaper than earlier)
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I also see social media posts rubbishing State GST & Central GST. Note that the 18% GST is split as 9% State GST and 9% Central GST.
We pay nothing extra.
2. I also see many posts that India has GST rate of 28% which is the highest amongst all the countries in the world...
Again, misinformation only to cast aspersion on the rulers..
28% tax is the highest slab and not applied @28% across board...
75% of items have 12% slab, there are many items at 0% and 5%..
Unfortunately, the posts are getting forwarded and debated in social media as if India has the highest rate..
3. One Nation, one Tax is reality now.. no more check posts, free movement of commodities across India is possible now ...
But traders and some less informed people are scared as the tax net is going to widen now..
Transparency in business will surely reduce black money as every transaction is going to be accounted now ..
Black marketers are worried lot, not genuine tax payers .
Public should stop misinformation and let us give time to watch the happenings before we jump to conclusions.
(Courtesy: Nagaraj Achar , Chartered Acct.)
