GST from July 1: Know how the new tax regime will make these things less expensive
New Delhi: India's new indirect tax regime, Goods and Services Tax (GST), which is planned to be taken off from July 1, will prompt lower tax load in a few items including bundled cement, Medicaments, Smartphones, and medicinal gadgets, including surgical instruments
The rollout of GST will convey advantages to the customers because of diminished tax rates on different items, for example, Packaged cement, medicaments, phones, and restorative gadgets, and so on.
Packaged cement
Packaged cement pulls in focal extract obligation of 12.5% + Rs 125 PMT and standard VAT rate of 14.5%. At these rates, the present aggregate tax frequency works out to over 29%. On the off chance that we incorporate tax occurrence by virtue of CST, octroi, section tax, and so on., the present aggregate tax rate would work out to over 31%. As against this, the proposed GST rate for cement is 28%.
Medicaments
There will be lesser tax trouble in the event of Medicaments, including Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems also. Medicaments, all in all, draw in 6% focal extract obligation and 5% VAT. Further, CST, octroi, passage tax, and so forth are likewise appropriate all in all. At these rates, the present aggregate tax occurrence works out to over 13%. As against this, the proposed GST rate on prescriptions, including ayurvedic drugs, is 12%.
Smartphones
Smartphones pulls in 2% focal extract obligation [1% extract obligation + 1% NCCD]. VAT rates differ from State to State from 5% to 15%. Weighted normal VAT rate on cell phones works out to around 12%. Along these lines, the present aggregate tax occurrence on cell phones works out to over 13.5%. As against this, the proposed GST rate for advanced mobile phones is 12%.
Medicinal gadgets
Essentially, restorative gadgets, including surgical instruments, when all is said in done pull in 6% focal extract obligation and 5% VAT. Alongside CST, octroi, passage tax, and so on., the present aggregate tax occurrence on them works out to over 13%. As against this, the proposed rate under GST is 12%.
Puja samagri
Puja samagri including havan samagri will be under the Nil class. In any case, correct definition for the same is yet to be settled.