GST is a new tax system launched by PM Modi on July 1st, 2017, which embodies the belief ‘one tax one nation’. It is a move to replace all other indirect tax. The impact of GST varies from field to field. Let us know the effect of GST on various sectors.
Impact of GST on common man
India is a country with the maximum population of middle and lower-middle-class people. Here a person either belongs to service class or entirely depends on agriculture for their livings. The central question nowadays is that what Impact GST has made on the life of common man.
For the common man, the main impact of GST is when the prices of their daily necessity products are affected. And the reality is that public is very unsatisfied with the changes made by a government in terms of GST. for the government the satisfaction of public should be the priority or else their plans will never succeed.
Common areas were common man have to deal every day
About 56 percent population in the country is complaining that GST implementation has increased the daily household expenses and this is automatically affecting the common man’s life. It’s about five months since GST has been executed and according to the survey, every two people believe that new tax regime has augmented the cost of living.
GST needs complete repairing
GST needs a full remodeling, as this new tax regime has shattered a living of common man. Last month a senior from Modi government to confess that GST implementation is the total disaster especially for the common man. There are numerous questions that need to be answered by the Modi government
- Why was the government in such a hurry to launch GST?
There is a lack of preparation which is quite apparent prior to implementing GST. The government doesn’t even have time to test it appropriately. This process of executing GST had totally messed up the economy.
- Why is everything not apparent in the minds of people?
There is a lack of clarity in the mind of people as they are perplexed on all aspects. There is the lack of communication with the government on this matter. There are many other countries also where GST is implemented; they don’t have any kind of confusion regarding new tax regime. The reason for this is that those nations have spent a lot of time for training all those who had to be the part of GST implementation and all this has not happened here in India.
- Why too many GST rates?
These diverse rates of GST had made the entire system more complicated. Other countries where GST has been implemented has only one rate and which is clear to all people. There is no confusion and not at all any type of complication regarding that. And owing to this diverse GST rates India’s economy is suffering a lot.
- Why many taxes have no meaning and no sense?
The diversity of taxes made people totally confused and some taxes are such that make no sense at all. Taxes on condoms are 0 percent, and that on sanitary napkins are 12 percent. And the ridiculous thing is this only branded sanitary napkins applied GST on it. is this so that only branded condoms will have GST on them and not the unbranded one. GST rates on gold and diamonds are 0.25 percent and 3 percent respectively, on the other hand, GST rates on the useful commodity like matchsticks are five percent.
There are many questions more same as above which should be answered by Modi government at any cost. Implementation of GST is not a wrong decision at all, but the way in which it has been implemented was totally wrong. Indian population is so confused regarding this new tax regime that they are suffering a lot.
Modi Government should keep this in mind that for common man Roti, Kapda and makan is the priority. The government had made all three priorities of common man a challenging to earn task. For the long term, it can be considered that GST can benefit the economy, but the implementation of GST had shattered the living as well as the dreams of common man.