Birth of GST
GST is a term that brings a lot many memories of the phase after demonetization and the ruckus that it led to among the Indian public. Still brings back memories of the announcement, as the word spread like fire among the people. Money, by default, has the potential to top the search engine charts of most searched keywords. Adding cherry on the cake was Bitcoin coming into the picture, bringing in a whole new world of knowledge, ideas, and physiologies. Around the year 2017, GST and Bitcoin stormed the world and became the highest number of times searched keywords. Since then, GST has continued to be used every now and then, even if it isn't recognized as the most searched word.
GST Rate bump - Kind of Rebirth
Mark the date, July 18th, 2022, as a rebirth of the term GST because the Goods and Services Tax Council has announced a bump in the rates to take place that day onwards. Nirmala Sitharaman commented that the decision had been taken, keeping in mind the efficiency that needs to be restored in the value chain. As it is, the market is going downhill, the high-flying crypto-currency has seen its worst crash ever, and the release of this announcement is surely going to impact inflation, taxes, and many other things. The public is confused that with the inflation climbing hill, how could a jump in GST rates make sense.
"Technology may correct anomalies for inefficiencies and therefore may have a possible impact on revenue collection. But the revenue-neutral rate of the RBI study has been breached to the disadvantage of the system... That calls for a correction," Sitharaman reported at the 47th council meeting. "The Fitment Committee's suggestions before the GST Council were considered in full, and more or less, all of them have been accepted," she added.
Certain announcements that have been delayed and can cause a commotion
Revamping GST slab rates is the primary decision that has been delayed by 3 months as the council gave the Group of Ministers time to think about it. Also, the matter of introducing taxation in online games, horse racing, casinos, etc., has not concluded. They are targetting 15th July to make a decision public. August first week, Madurai will host the council members to address the same. While the council showed no interest in the issue of injecting tax into crypto-currencies, they showed no confirmative attitude towards the opposition-ruled states' demand of extending the compensation cess.
GST is ubiquitous!
The council, aided by a panel of state ministers, decided to bring in the effect of GST onto materials and stuffs like hotel rooms with a tariff below Rs1,000 per night, hospital rooms with a daily tariff of over Rs5,000, cereals, pulses, foodgrains, honey, curd, lassi, buttermilk and a whole lot of brand-less food items. These items are presently absolved of GST, but it is just a matter of time before GST pokes its nose there too. Official dates to make it public have not been decided yet, but the decision has been taken already at the Chandigarh Council meeting.
GST Council has, as of now, spared the daily items such as bread, incense sticks, candles, utensils, and also educational institutions, heard aids, etc. The council's attention has also been taken towards GST system reforms demanding firm scrutiny of high-risk taxpayers and making the requirement of electricity bills during registration a proper and mandatory thing.
States promised compensation from the Centre
The Centre has promised compensation in the light of this GST reformation bringing any kind of revenue dips. GST has been and will be the talk of the town for the upcoming few months. The council has permitted states to issue e-way bills for the movement of gold and precious stones within the state.
The decision to bump GST rates has added to the crashing market and rising inflation. People are losing their minds, blowing out steam by thrashing the government. The talk regarding this decision and the previous few announcements regarding tax is that the government is more inclined towards taxes and GST rather than addressing issues like air quality, pollution, etc. We are heading to a world where eventually nothing would be exempted from the grips of GST, not even the basic necessities.
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