A unified tax regime

Apropos the report 4-tier GST rate fixed (Nov. 4), GST is seen as the greatest economic reform after independence which will abolish plethora of Central and state taxes on goods and services bringing the entire country under a unified single tax regime which will make things easy for businessmen and the general public. With the GST Council finalising 4-tier GST rates another major hurdle in implementation of the GST from April 1, 2017 has been crossed. Zero tax on food grains and on about half of other items which make base for calculation of the consumer price index will check inflation while transferring a number of items which are now used by lower middle class from 28 per cent category to the 18 per cent category will provide relief to poor and middle classes. However, any increase in the service tax will hit the common man. Services need to be made cheaper.

M.C. Joshi

Lucknow

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