Read Here GST Impact on Taxpayers

GST Impact on Taxpayers

Goods and Service Tax (GST) has been implemented in India and hence its impact is clearly visible. The new indirect tax regime of the country has gone through many approvals before it has got the clean chit and fit to be made effective. In a democratic country like India, people choose who they want as their political leader and the decisions they make for the betterment of the nation is then followed by all.

Now, GST was something people have got a little less understanding as they were used to paying VAT, Service Tax, etc. Also, the reason behind the confusion might be the issues people are facing while paying the GST. Particularly, the impact of GST on Taxpayers can be felt by the fact that people are talking about its effect and difference. So, here we will talk about the GST impact on Taxpayers with the focus on salaried class and businessmen.

What is the GST Impact on Taxpayers from salaried class?

GST impact on the salaried class taxpayers is overall beneficial. Since on the one hand, the expenditure on restaurants, movies, shopping, consulting, construction, etc. have increased and on the other hand expenses like household items have decreased. So, there is a lot in favor of salaried people. The GST is in the rate from 0% to 28%. Post the implementation, the purchases done by the salaried people have become simpler as compared to the past as now they know which tax they are paying. All the indirect taxes have been replaced by one tax and that is GST.

So, now there is no entertainment tax, luxury tax, Service Tax, VAT, etc. Since the salaried class is directly affected by Income Tax which is a direct tax, GST, being an indirect tax, will not be affecting the people of this class much in a bad way but they can surely enjoy the cheaper household expenses.

What is the GST Impact of Taxpayers from business-class?

The impact of GST is going to have a direct impact on the business-class as compared to the salaried class. Since GST is an indirect tax and has nothing to do with Income Tax or TDS. So, the direct taxes will be same as earlier which means the business-class has no running away from paying the taxes. Jokes apart, the

What is the impact of GST on Lawyers and Law Firms?

As per the GST guidelines issued by the Central Board of Excise and Customs (CBEC), services provided by Lawyers and Law Firms to any person including a business entity having a turnover of ₹20 lakhs are exempted under the proposed indirect tax net. Earlier, the turnover limit prescribed was ₹10 lakhs. Also, the services provided by Senior Advocates, which were brought under the tax net in the year 2016 will continue to be taxed under the GST regime.

However, the services provided to any person other than a business entity and a business entity having a turnover of below ₹20 lakhs is out of the ambit of GST. Until the year 2016, there was no such distinction made between the Senior and ordinary Advocates in granting exemption from the service tax.

What is the GST impact on Taxpayers in general?

We have seen the impact of this new indirect tax on taxpayers from different professional backgrounds. Now let us see what is its impact on the people in general. Have a look at the general commodities that have become costlier after GST.

Products costlier after GST

  • Mobile bills along with Internet packs
  • Hotel and restaurant bills
  • Transportation, including air travel, railways, and cab services
  • Luxury cars
  • Jewelry
  • Cigarettes/other tobacco products
  • Courier/DTH services
  • Aerated drinks, for example, Coca Cola, Pepsi, etc.
  • Textiles

As we can see above, some of the privileges have become costlier post-GST, it is quite visible that the GST impact on taxpayers, in general, is beneficial on the one hand but on the other hand it has increased the day-to-day life. We have to just wait and watch whether or the not the promises made by the government that GST is going to be a transformation in the Indian economy, is true or not.

Movablemark is a fastest growing general Blog. You can write about any of the following topics related Business, Finance, Technology, Health, Life Style, Fashion Home Improvement, Travel, Education & more. You will get the best results and attract more readers if you make your title interesting and specific.

Leave a Reply

Your email address will not be published. Required fields are marked *