GST has changed the whole tax system of India, but it effected slightly different some major industries. GTS tax calculator will give relax to small business enterprises with its newly implemented tax rates. Here we will discuss major changes and benefits of GST decided by finance ministry of India on Friday, 10th Nov 2017.
GTS council announced cutting rates of tax on 177 items from 28% to 18% and left just 50 items in highest tax slab. It will bring surely benefits of GST in India. It is a move to giving relaxing to small business and consumers.
GST Impact on Distributors, Retailers, and Manufacturers
In Indian manufacturer sector GST is performance and boost competitiveness. GST has impacted majorly manufacture sector due to indirect tax, which also increases admin cost. The new GST cut tax rates will give GST benefits to small organizations and consumers.
On Friday, (GST) Goods and Services Tax council have slashed rates across the board. It includes a range of daily consumptions items, relaxed penalties and squeezed rules to make it simpler for businesses. It is implemented especially for medium and small firms.
It will come into effect from 15th November 2017, which can be called a good GST package from the council. It will reduce disquiet over costs of compliance and boost demand of the consumer. As per GST council, it would be major concessions package after indirect tax system was applicable from July 2017.
GST council has slashed rates on around 177 items. Here are the details or items, which shifted from 28% to 18% in a better compliance-
Items reduced from 28% to 18% tax slab–
- Food and edibles
Chocolate, Cocoa products, wafers and non-alcoholic products
- Grooming Products
Shampoo, Skincare products, shaving cream, deodorants, hair dye, soap and washing powders.
- Wood and Rubber
Plywood furniture, tire-tubes of bicycles and three-wheelers and wallpapers.
- Personal Accessories
Wristwatches and Goggles
- Stones And Ceramics
Articles of Marble, Granite, Ceramics, Mica Glassware and Plaster.
GST Reduced Slab of 28% to 12%
- Common kitchen appliances like grinders stones.
GST New Slab of 18% to 12%
- Medicines, diabetic food, and spectacles frames.
- Food items like condensed milk, pasta, curry paste and refined sugar.
- Handicrafts Items including cane, bamboo-made furniture, cotton handbags and knitted hats.
GTS Changes Tax of 18%, 12% to 5%
- Eating outs move cheaper as 5% tax for all restaurants apart from 5-star hotels.
- Dried foods like vegetables, sweet potatoes, frozen or dried coconut shell and fish.
In the new GST cut Tax rates slab restaurants owners will get the biggest slash of 5% apart from 5 or 7 stars hotels. Here the GST council has made the decision to get more units in the scope of distinct tax payment window for medium and small businesses.