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What is the Impact of GST on the middle class:
Impact of GST on Middle Class: GST is a change from the traditional taxation, there will have some changes in the way under GST system levy. Mostly there will be the occurrence of some changes in prices of the goods and services under GST tax. After implementation of GST System, there are huge impacts would be raised on middle-class people. GST effects more on those middle-class families. In this post, we are going to clear all your doubts which are the impacts going to occur under GST system. People who are a ghee or tea consumers then they may cough up because those products are taxed costlier. Consumers who consume chicken, oil, butter etc those rates would be lesser.
Impact of GST on Middle Class:
The households who purchase a huge of coffee, masala powder, curd, ghee, chocolates, avid tea, etc these will be up to 5% higher.
Food items such as Paneer, sweets, and cornflakes have been costlier under GST system. And also Cigarettes, tobacco products, petroleum, aerated drinks and alcohols etc are exempt from goods & services tax and all the states would tie up to fix the prices.
People who like to have the snacks or ready to eat food or any side dishes while they drinking, the price of those snacks are costlier but not the alcohol.
Enormous changes in residential rents, motor vehicles, cars etc. Service tax will be increased to 18% from 15%.
Bank loans, insurance, health care, dining in restaurants, purchase of health etc are also getting more costlier under GST system.
Cereals which are unpacked, dairy products such as paneer, curd, milk, buttermilk, unbranded honey, vegetables, fresh fruits, all purpose powder, whole wheat powder, all seed variety goods like soya, mustard, sunflower, castor etc. Contraceptives, human blood when transfusion, printed books, bread, papads, newspapers. There are about 5 rates under GST tax on goods such as mentioned below, but these are not a complete list, but an overview.
5%: Sugar, coffee, oil, coal, cloves, space crafts, life savings drugs, nutmeg etc, safety machines which are made by hand, LPG.
12%: All the dry fruits, cheese, butter, tooth powder, steel utensils, mobiles, hairpins, crayons, pencil box, geometry boxes, tooth powder etc. all these goods come under the 12% tax category.
18%: The 18% tax will be applicable for FMCG goods such as Jams, aerated water bottles, ink, jellies, toothpastes, bath soaps, sharbat, milkmaid, all food sauces, aluminium ingots, all the military weapons other than revolvers and also guns are all belongs to the 18% tax category.
28%: Cars will come under the 28% tax category. Aerated drinks are also categorized under 28% tax.
These are the Impact of Goods and services tax on middle class. Nearly 140 countries where already has been commenced GST. Such countries are Germany, Canada, Japan, Pakistan, etc. By introducing the GST in a nation there are both Positive and negative impacts. But, kindly ignore the negative impacts and keep it in mind only positive impacts which will help to develop the economy of the Nation.