Optimism can be seen in the economy, as there will be a fall of 2% in inflation with the implementation of GST, Revenue Secretary Hasmukh Adhia said.
In his statement to PTI, Adhia said that, GST council, last week decided the tax rates of more than 500 services and 1200 goods, by setting them in four broad rates of 5%, 12%, 18% and 28%. Also added that the GST council will be meeting up again next week to decide on tax rates of controversial items like gold, bidi and biscuit.
He also informed that, the taxes are set in such a way that the extent of taxation has come down in many and remained at the same level for the remaining goods and services. Further adding he said, taxpayers currently have to pay both the centre and state taxes on a single sale, which adds to the increased cost causing the inflation pressure. But with the implementation of GST this issue will be resolved.
Lots of chaos and confusion is expected to be seen with the application of GST, as this is the biggest revolution in India’s Tax system, since Independence. To overcome this situation, GST Council has decided to set up massive campaigns, to educate the people regarding the new tax regime, so that they are not cheated by traders in the name of new tax system.