Mani, senior director, Deloitte.end-of.While primary, secondary and college education are out of GST purview, higher education will be covered. If any of the services that should find place in the merit rate of GST, the first in that list will be telecom services,” he said. “With respect to medicines, we request some leniency. As the passage was the result of difficult political process spread over several decades, it obviously calls for celebration. Under the GST regime, all companies could be brought under 12 per cent slab — this will benefit big companies, but not the small ones. The latter is already subject to VAT and excise and if GST is lower, then the consumer stands to benefit.5 per cent.The housing sector will also bear the brunt of higher GST rate.
“GST is equally applicable to all sectors and is not sector-wise as in China, which <a href="https://www.mmtex.top/">China Knitted Fabric</a> has separate rates for financial services, manufacturing, transport etc. Manufacturers with less than Rs 1.5 crore turnover pays around zero to 12. “Without addressing the needs of home buyers, the government's desire of housing for all will not be met,” he said.Ms Shobana Kamineni, vice-chairperson, Apollo Hospitals Group and president designate, CII, has sought lower GST rate for medicine.While the government has not revealed its cards, a committee head by chief economic adviser Arvind Subramanium recommended 18 per cent rate."Whether GST rate is 18 per cent or 22 per cent, ICRA says the GST rate applicable to services is expected to be higher than the current service tax rate.Clothing will be more expensive if the GST rate is not uniform on yarn, fabric and apparels, and similarly in the case of the food processing sector, he said.
The current tax rate is four per cent, and the proposed 12 per cent maybe passed onto the consumers since the manufacturers have been sev-erely hit by pricing controls.The GST regime, it is speculated, will have three slabs — 12 per cent for essential goods and services, 18-22 per cent standard rate for all goods and services, 40 per cent for products that the government wants to discourage.Currently, manufacturers, other than exempted categories, pay around 25 to 30 per cent tax, which includes excise duty and VAT. So eating out, air travelling, gym, coaching, investment advisors, real estate agents, cab services, etc will become costly.The GST Bill, which was cleared by the Rajya Sabha, is the culmination of mo-dest efforts began with the introduction of MODVAT exactly 30 years ago.Currently, agri-based products manufactured by big companies are taxed at 10 to 16.5 per cent (four per cent VAT and 6 to 12.5 per cent service tax.“However, in the positive all the non-creditable state taxes become creditable under the GST regime, which would moderate the increased tax burden.Except for statements by experts about GST boosting economy by two per cent, people are in dark about what the GST entails and how it affects their daily life through inflationary effect on basic products and services like food, housing, education, clothing, medicine and healthcare, telephony, utilities and travel.So he feels the government should have one more slab for essential goods and services.According to rating agency ICRA says, “The incidence of tax on various goods and services would change, depending on the final rates.In the case of transport, Mr Mani said public transport like buses, trains, taxis etc, are exempted but luxury buses, the Uber and Olas private taxis will come under GST. “Today, healthcare pays four per cent VAT. Under the GST regime, this is increased to 12 per cent — the lowest slab under GST.