This season we found sale on many costly electronic appliances. Discounts vary from 20 to 40% on every item. Look at Amazon, Flipkart, Shopcluesâ€¦. All are offering discounts on different items; electronics, appliance, bartwear, clothing. All this is happening because of GST. GST is Goods and Service Tax which is indirect tax applied when a customer buys goods or services. The Goods and service tax or GST bill was passed by the Rajya Sabha on August 2016 and it is going to be implemented from 1st July 2017 which includes all small taxes in one tax.
Due to multiple taxes levied by the central and state government the cost of goods and services increases. So the government has introduced a new tax system – GST. All other small taxes are not been continued longer as we have to give all in one tax and that is GST. GST bill aims to make India, nation with one taxation system where all states and UTs are under one market with one tax.
Retailers to clear their inventories are giving hefty discounts as after 1st July the new GST tax will be implemented on all the new stocks. Old stocks would not be having GST tax as they would be billing with old tax. As per the transition provision, Input Tax Credit (ITC) will not be available to dealers with stock older than a year. So there is need to remove old stock to come up with the new tax plan. For this, retailers and E-commerce sites are offering big discounts on electronic products such as Televisions, Refrigerators, Air-conditioners and Washing Machines.
The GST is being introduced to create a common market across states, not only to avoid weak effect of indirect tax but also to improve tax compliance. GST will lead a more transparent and neutral manner to raise revenue. It is predicted that an overall economic growth of at least 2% is expected once GST is implemented.