All about GST for common man & Its Impact on Unstitched Fabrics Industry:
UPDATE : THERE WILL BE 5% GST LEVIED ON MOST KINDS OF UNSTITCHED FABRICS (EXCEPT A FEW LIKE JUTE ETC) POST IMPLEMENTATION OF GST IN INDIA. WE ADVISE YOU TO TALK TO YOUR CA OR TAX CONSULTANT FOR ACCURATE DETAILS.
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GST has been much hyped about since few weeks. The quite anticipated Goods and Services Tax Bill (GST Bill) has been approved and is expected to come into effect by April 2017 so Fashion Station is here with all the latest updates on GST to help our customers benefit from the taxes system.
When GST comes into effect it will have a great impact on the businesses and purchasers both.
What is Goods And Service Tax Bill or GST?
GST is an extensive tax system where both the central and state taxes is collected at the time of the sales.
Taxes will be levied on manufacturing cost.
People will be profited by this as costs will go down and lower costs means more consumption which in turn will lead to more production thereby promoting growth and development of organizations and companies.
Impact of GST on Textile and unstitched clothing business.
In ICRA’s perspective, a 12% (lower rate) suggested by the Dr. Arvind Subramanian’s Committee is prone to negatively affect the unstitched clothing business and textile industry, particularly the cotton esteem chain, which is right now pulling in zero duties; dissimilar to the man-made fiber segment, where the fiber draws in excise duty at the manufacturing stage.
Because of the lessened duty favorable position of cotton yarn opposite man-made yarn, there can be a steady move in the household material industry, which right now works with a fiber blend of cotton: artificial of 60:40; as against a worldwide normal of cotton: synthetic of 40:60. In any case, the above effect will be subject to the last rates which will be appropriate to the segment
GST and Common Man
Over time, the lower taxation rate could interpret into lower costs on products for shoppers. The tax structure will also become more easy and simple
All Indirect charges will chop down to one duty , useful for common man to comprehend and apply to use .
Fall in Prices of some of Goods: evacuating such layered tax collection should lead to lower prices for the consumers.
Lower corruption rate – Number of offices will decrease which thus may prompt less corruption.
What will GST make Expensive?
Bills at Restaurant will be more with GST. For instance, on the off chance that you were accustomed to spending Rs 100 on eating out, then there is VAT and service tax of 18.5%, on an average. So separated from the service tax, you would for the most part spend Rs 118.50. It is normal that the GST rate will be settled at around 18-20% which is higher than the 18.5% we spend aggregately under various duty heads. Along these lines, be prepared to pay more while eating out!
Currently the service tax on mobile bills is 15%. That is to say, on each Rs 100 charge, you need to pay Rs 15 as tax. On the off chance that GST comes in at the normal 18-20%, then mobile bills will go up.
In the event that you are wanting to purchase jewelry, it is advisable to purchase it before the GST administration comes into spot. This is on the grounds that, as of now, just a 2% tax is payed by the shoppers however once the GST model is set up, no less than 6% successful tax rates could be forced, affecting your jewelry purchases.
What will be less expensive?
GST is relied upon to cut down the expense of logistics essentially and also help in smooth inter state trade. This will help in speedy movement of goods and cut down costs for e commerce organizations. Overtime this lower costs benefits will be transferred to the consumers in the form of lower prices.
Branded Clothes will become cheaper too.
With all these information Fashion Station promises that we will always be available to you with the best low prices from the market for all.