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Dear Friends,

For the past over 10 years, GST had been lying in the cold room even with the change over of guard at the centre from UPA to NDA for all these years. There were times when UPA proposed GST and NPA opposed tooth n nail. With some understanding within the ruling and opposition (Congress), it has seen the light of the day. Following would be the highlights of GST -

1. Taxes levied separately by Centre and states shall be clubbed together to take the shape of one GST.
2. The standard rate of GST at 22% being worked out shall cause some loss to the state where they are levying at higher level. The loss thus suffered by them shall be compensated by centre out of GST pool.
3. To curb inflation, essential services may attract lower level of GST than 22% proposed.
4. Items like luxury goods n tobbaco product may attract higher level of GST even more than 22%. The aim would be to take care of increasing health hazard and tax the pocket of those who can afford for luxury items.

Overall, come April 2017, the implementation of GST (if it gets through by that time) shall upset the apple cart of some industries. Let us see how it effect post April 2017.

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