Will GST Really Spike Up Your Bills?
The Finapolis|June 2017

As goods and service providers can claim input tax credit, your net tax bill will reduce say experts

S Vijaykrishnan
Will GST Really Spike Up Your Bills?

The government’s announcement of the rate fitments under the Goods & Service Tax (GST) re-gime have created a lot of brouhaha over how the common man’s bills are set to rise. But before arriving at any generalisation, it is necessary to understand the reason why the GST rates have been fitted as they have been.

Experts that the Finapolis spoke to say that a tax regime always works to lower the gap between rich and poor, which results into a higher tax on goods/ services consumed largely by the high-income group bracket. The other challenge for the government was to set rates in a manner that doesn’t affect the exchequer’s revenue in the post GST era (i.e. in a revenue neutral manner).

Saurabh Gupta, Chartered Accountant, Gupta Saurabh & Co told the Finapolis, “The government had the option to prescribe a single GST rate for all products, but this would have resulted in high inflation, defeating the GST’s basic principles. Though a one-two GST rate structure followed in many countries sounds simple, a four-slab structure with cess on luxury goods seems to be a right fitment for the progressive Indian economy.”

Another key point to note is that the government has merely declared the rates and not ‘notified’ them yet, Gupta added. Reports indicate that the list of rates announced in the May 18-19 meeting may undergo some changes at the GST Council’s next meeting on June 3.

Denne historien er fra June 2017-utgaven av The Finapolis.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra June 2017-utgaven av The Finapolis.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA THE FINAPOLISSe alt
7 Ways to Prevent Text Neck
The Finapolis

7 Ways to Prevent Text Neck

Our head is heavier at an angle than it is at a neutral position. That means our increasing usage of smartphones for reading, texting, etc is putting undue pressure on our spine

time-read
3 mins  |
September 2016
How To Take Your Networking To Next Level
The Finapolis

How To Take Your Networking To Next Level

Networking is one of the best ways to use your time

time-read
4 mins  |
September 2016
5 Fun Ways To Save Money
The Finapolis

5 Fun Ways To Save Money

There are several simple ways to reduce spending and rack up more cash. Sukanta Kundu lists some interesting ones.

time-read
4 mins  |
September 2016
In Search of Higher Returns Amid Falling Rates
The Finapolis

In Search of Higher Returns Amid Falling Rates

As Bank Deposit Rates Fall, Even Conservative Investors Are Switching Assets. Where Can They Go? 

time-read
5 mins  |
December 2016
National Savings Certificates Help as Interest Rates Fall
The Finapolis

National Savings Certificates Help as Interest Rates Fall

National Savings Certificates (NSCs) have been among the most popular tax-saving options for ages. In spite of the advent of market-linked investment products such as equity-linked savings schemes (ELSS), the certificates have retained their charm for certain sections of society. In this column, let us discuss the various facets of this special instrument of investment.

time-read
3 mins  |
December 2016
What Drives Us to Invest?
The Finapolis

What Drives Us to Invest?

I had made the journey from economics to finance. As part of Keynesian economics, we were taught about the three motives to hold money: the transactions motive, the precautionary motive and the speculative motive; all through my teaching career that remained part of my Keynesian economics. But two decades, later when I immersed myself into the world of investment, I had to develop my own tools to understand the new discipline and make my investors understand the working of their own minds. One night as lay turning on my back, poring over the day’s happenings, suddenly I made a strong connection between what I had studied years back and the problem I was grappling with now: the motives.

time-read
4 mins  |
December 2016
Ask The Finapolis
The Finapolis

Ask The Finapolis

Col. Sanjeev Govila (retd) of Hum Fauji Investments answers readers’ queries on investments, taxation and personal finance. Do you have a question you want answered? Email your question to feedback@thefinapolis.com

time-read
9 mins  |
June 2017
Input Tax Credit To Benefit End-customer
The Finapolis

Input Tax Credit To Benefit End-customer

Looking at the scale of India, it is reasonable to expect 3-5 years for the system to stabilize

time-read
4 mins  |
June 2017
Will GST Really Spike Up Your Bills?
The Finapolis

Will GST Really Spike Up Your Bills?

As goods and service providers can claim input tax credit, your net tax bill will reduce say experts

time-read
4 mins  |
June 2017
The Bull Run Is Here To Stay
The Finapolis

The Bull Run Is Here To Stay

Karvy Finapolis’ event —“Is this the mother of all bull runs?” — evoked a thunderous response from investing public recently in Hyderabad.

time-read
4 mins  |
June 2017