GST is meant to bring every indirect form of tax under one roof. For small and medium sized businesses, owners or manufacturers have to take care of different taxes and have to run to various departments to fulfill all the tax-related documentations. Some file different taxes annually, half-yearly.
THE CHANGES IN TAX RATE COME INTO FROM JULY 27, 2018.
- AUTOMOBILE :
- Lithium ion batteries: GST rate change from 28% to 18%. This will bring down cost of electric vehicles, since battery cost comprises nearly 35-40% of total EV cost currently. The move will improve affordability and acceptance of Evs in India, in-line with government plan.
- Special purpose vehicles such as concrete mixer, crane Lorries, fire fighting vehicles etc. GST revised rates of 18%from 28%. There will be limited collision on companies, since the GST revised rates include limited types of vehicles.
- OIL AND GAS :
- Ethanol for companies : GST revised rates of 5% from original rate of 18% previously. The move will somewhat (through not considerably) soften impact of rising crude oil prices, which have rallied in recent times. Government has set target of 10% ethanol blending in petrol by 2022 and 20% by 2030.
3.PAINT:
- GST revised rates of 18% from 28% earlier. This rate cute should increase decorative players ability to effectively manage in an inflationary input cost environment as the ability to take price hikes increase post the tax cut driven reduction in consumer prices.
4.CONSUMER ELECTRICALS: The new GST rates for following items @18% (earlier 28%)
- Washing machine, vacuum cleaners, televisions up to the size of 68 cm,(including water coolers, ice freezer; etc.)
- Domestic and kitchen appliances such as food grinders and mixer & food or vegetable juice extractors
- FOOTWEAR: footwear having retail sale price up to Rs 1000/pair now will attract new GST rates of 5% (footwear having a retail sale price up to Rs 500/pair is already covered under 5% rate)
HOW GST HELPS TO SMALL BUSINESSES