The GST bill is the big bang reform (one of the biggest indirect tax reforms in our country) that is aimed at creating a single, unified market that will benefit the corporate, economy and the youth of the country. It will merge many individually applied taxes into single tax and credit of input tax paid at each stage of value addition will be available and final consumer will thus bear only the GST charged by the last dealer in the supply chain.
GST will not only increase the ease of doing business but also will remove cascading effect such as charging of VAT over Excise Duty or non availability of Input rebate of CST, thus reducing hidden costs of doing business.
The GST reform will have manifold effect on the youth of the country as well. It will increase job opportunities as well as lower costs of various good and services. Its effect on various sectors of country’s economy can be summarised as under:-
- Media and Entertainment:-
Time to go to movies!!
Admission to entertainment events or cinematography films attracted upto 100% of entertainment taxes in some states which will now be taxed at 28% GST thus lowering the cost. With lower ticket costs, footfalls in theatres and entertainment spots are expected to go up.
Film makers and studios for the first time stand to enjoy input credit as so far they were part of the negative list. This means more opportunities for the entertainment industry and as the sector being considerably manpower intensive would lead to newer jobs.
Also Cable TV and DTH attracted up to 30% Entertainment tax and 15% Service tax. The rate for these has been fixed at 18%, again lowering the cost.
- Auto industry –
Attention Youth!! Love for Bikes and cars can get cheaper!!
Current levies of Indirect taxes and Cesses on Cars vary from 30% to 45%. But with GST coming into picture, it can face decrease in costs due to decrease in tax rate. The tax rate for motorcycles, automobile, aircrafts for personal use, yatch etc is 28% (though keeping it in luxury goods category but still keeping it affordable).
For Food and Beauty and Care Sector, click next page