India has been waiting for this since the inception of its Independence. Today, with the introduction of this GST on 1st of July, India woke up to a new era of its Economic Resurgence. This is the biggest fiscal reform in India since Independence and will change the course of history of India.

‘GST’, or Goods and Services Tax refers to the “ONE MAN ONE TAX” Theory where this reform will bind us all with a one-time Tax, thereby eliminating a lot of indirect taxes taken from the innocent, hardworking public. It was first introduced in 2007-08 budget session.

GST is built to mould India into a common market which will prove itself bigger than the European Union. Analysts and critics say that by doing away with unnecessary taxes and barriers with the illusion of making the country grow through ‘Tax’, GST is bound to increase actual economic growth in real terms.

In a GIST as propounded above, without further delay, I would reveal the GST tax on different goods and services on the Household products, that is going to take place from now on.
GST at 0%

  • Unpacked Foodgrains
  • Health Services
  • Educational Services
  • Unbranded Atta
  • Fresh Vegetables
  • Unbranded Maida
  • Unbranded Besan
  • Kajal
  • Salt
  • Gur
  • Milk
  • Eggs
  • Curd
  • Lassi
  • Unpacked Paneer
  • Unbranded Natural Honey
  • Palmyra Jaggery
  • Phool Bhari Jhadoo
  • Children’s Drawing and Colouring Books

GST at 5%

  • Sugar
  • Tea
  • Roasted Coffee Beans
  • Edible Oils
  • Skimmed Milk Powder
  • Milk Food for Babies
  • Packed Paneer
  • Cashew Nuts
  • Raisins
  • PDS Kerosene
  • Domestic LPG
  • Footwear (Upto 500INR)
  • Apparels (Upto 1000INR)
  • Agarbatti or Incense Sticks
  • Coir Mats

GST at 12%

  • Butter
  • Ghee
  • Almonds
  • Fruit Juice
  • Packed Coconut Water
  • Preparation of Vegetables, Fruits, Nuts or other parts of Plants including Pickle, Murraba and Chutney
  • Jam and Jelly
  • Umbrella
  • Mobiles

GST at 18%

  • Hair Oils
  • Toothpastes
  • Soaps
  • Pasta
  • Cornflakes
  • Soups
  • Ice-Cream
  • Toiletries
  • Computers
  • Printers

GST RATE on Others

  • Diesel engines of power not exceeding 15HP 
  • Tractor rear tyres and tubes 
  • Weighing machinery 
  • Static converters (UPS) 
  • Electric transformers 
  • Winding wires 
  • Helmet 
  • Crackers and explosives 
  • Lubricants 
  • Bikes 
  • Movie tickets less than Rs 100 
  • Kites 
  • Luxury cars 
  • Motorcycles 
  • Scooters 
  • Economy-class air tickets 
  • Hotels with tariff below Rs 7,500 
  • Cement 
  • Fly ash bricks and blocks 

While these are the information, there still lies a stark difference between the Ideal GST and the Indian GST, which are as follows:

Real GST Versus Indian GST

  • Actual or Real GST, is nowhere close to what is being inaugurated tomorrow, which is the main shortcoming of this GST, to which Finance Minister Arun Jaitley pleads the public to have patience as there will be trouble initially, but will be fruitful afterwards.
  • Years of negotiations with the political parties, state governments and industrial associations have complicated the proposed Tax System, that is GST.
  • Having said that, the government chose to go with the Philosophy of “Any GST is better than a No GST” with future hopes of implementing the REAL GST which can take months, or years beyond the proposed date.
  • To this, Revenue Secretary Hasmukh Adhia comments, “We will prefer a single GST rate, but after sometime. That should be the ultimate goal.”

 

Now its here to decide whether GST will come off as a Magic or a Mirage for the Indian Economy, having seen both its prospects and consequences. But what’s progressive is, that Gujrat, Maharashtra, Haryana, Rajasthan and Chattisgarh to Uttar Pradesh, West Bengal and Odhisha: Have all given up on Check-Posts.
But nevertheless, it’s a good step among all the steps that has been taken to better India, and accelerate Economic Growth. It is the single Biggest Tax Reform, which has now become, a Reality. Let us welcome it, in union.