With GST (Goods and Services Tax) rolling out in July this year, it created a lot of confusion among the citizens of the country. The intent of this tax change was to simplify and unify the taxes, create transparency and to reduce black marketing and tax evasion. Earlier, there were several taxes on different products like VAT, ST, CST, Entertainment tax etc. but with the introduction of GST, the government now levies only one tax from its citizens.
The bifurcation is simple, half of the tax goes to the central government (CGST) and the other half goes to the state government (SCST). And if the tax is to be levied by a different state, then the full tax amount goes to the interstate government (IGST). For eg: *if the total GST charged on a particular good is 18%*
The tax rates are divided into 4 divisions: 5%, 12%, 18% and 28% are charged on different products of various sectors depending upon the category they fall under. GST has influenced almost all the sectors more or less. We at BazaarCart conducted a study and concluded that the FMCG sector is shining after the GST roll out. FMCG market is an unorganized market in India and this is what has proven beneficial. The prices of the food and household products are slashed and the manufacturers are trying to unify all of their units ranging from manufacturing to the distribution or delivery to cut down on the product cost. All these savings will hence go on to the consumers in the form of cheaper products and services.
The government has benefited the Indian consumers with a 0% tax slab as well which will include a handful of goods like fresh fruits, curd, eggs, milk, fresh meat, fresh chicken, fish, natural honey, salt, newspapers, printed books, to name a few. BazaarCart will soon be stepping in the industry of fresh fruits and vegetables, dairy products etc. to offer good quality products to its consumers.
The 5% tax slab will comprise of the products like packaged food, apparel under 1000 bucks, tea, coffee, frozen vegetables, spices and many other items.
The 12% tax slab is slightly bigger with more goods like frozen meat, dry fruits, butter, cheese, snacks, fruit juices and so forth.
The next slab under the GST is the 18% slab. It contains the most number of items including biscuits, sauces, jams, pastries and cakes, printers, aluminium foils, monitors, camera etc.
The 28% tax slab includes tobacco, dishwasher, hair shampoo, dye, shaving cream, deodorants, sunscreen and many other goods.
The Director Consultant of BazaarCart.com, CA S.P Jalan recently shared his thoughts publically on the GST roll out mentioning that the overall impact of the new tax system has been embraced by the online FMCG marketplace and many other sectors positively. The scenario seems productive for the household and FMCG goods in the long run. The Indian consumers will be able to leverage the benefits of the GST through the attractive prices soon defying all the chaos. Overall, GST would lead to less paperwork and more on focussing on the services provided by the companies. This would eventually help the consumer as they would receive faster delivery and better services.
The hike in product prices in the short run may create confusion but the consumers need to understand the fact that GST is aimed to boost up the Indian GDP and a balance will be created with the blend of hike and declination of the prices of various goods.
BazaarCart has ensured that there is no gap between demand and supply which can hamper its services. To buy daily needs items among thousands of products at the best of prices, visit www.bazaarcart.com