This is a great saying by Francis Picabia. “Youth doesn’t reason, it acts. The Youth of a Nation are its strength. Our country is blessed with the power of youth. By 2020, India could have the World's youngest population. The average age in India would be 29 years with 64% of its population in the working age group.
If you are a youth in India living in these great and interesting times, it's time to get ready for the GST. Goods and Services Tax, popularly called GST, is a single indirect tax for the whole Nation. GST will replace all other indirect taxes which are charged by the State and Central Government. It is believed to be the biggest reform since India got her independence.
Why is GST Good For The Youth In India? GST has the power to increase GDP by 2%. The youth in India want jobs and GST has the power to give it to them. Find Tax Planning difficult? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service.IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and capital markets.
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The GST Council has decided to have a 5-tier slab structure of 0%, 5%, 12%, 18% and 28%.
0% Tax Rate: You can expect 0% tax on food grains, milk, vegetables and essential medicines.
The first slab is 5% Tax Rate: You can expect tax rate of 5% on items of mass consumption like coffee, tea, spices and edible oils.
The second slab is 12% Tax Rate: You can expect processed food items to fall under this slab.
The third slab is 18% Tax Rate: You can expect toothpaste, soaps, refrigerators and smart phones to fall under this slab.
The fourth slab is 28% Tax Rate: You can expect white goods to fall under this slab.
There is another category of tax, 28% + cess, charged on sin products like tobacco, aerated drinks, pan masala and luxury cars.
See Also: GST Tax Rates In India
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Thank God Its Friday....Time to go to the movies. If you love going to the movies, there is good news. Movie tickets could become cheaper after GST. Dining in restaurants would also be pocket friendly.
Movie tickets and tickets of theatrical performances will be cheaper after GST. Why is this so? Theatre chains have to deal with different tax processes in different states. After GST, entertainment taxes will be absorbed in GST, making your movie tickets cheaper.
Dining out will get cheaper because restaurant services will be considered as services and could fall in the 18% GST slab. Currently VAT and Service Tax of 20-24% are charged on your dining bills.
See Also: GST Tax Rates In India
Your Friday Nights are sorted...Right?
2. The Youth love cars and bikes and they could get cheaper
What's life without a ride on your bike? Can you even think of missing those long drives in your car? Youth of India pay heed....Cars and two wheelers could get cheaper. Tax on cars and two wheelers is quite high at 27%. After GST, small cars and two wheelers could fall under the 18% GST slab. This is nearly a 10% reduction in tax.
Get ready for life in the fast lane...
3. Processed goods will be cheap and it's time to munch on biscuits and cakes
The youth in India love eating. Biscuits and cakes just disappear off shop shelves. After GST, processed food will be cheaper than before. Expect processed foods to fall under the lower GST tax slabs. Branded clothes could also get cheaper. Time for shopping...
Youth in India need jobs. They badly need jobs. GST can give it to them. The unorganized sector in India used to have no taxes. With GST, the unorganized segment will be drawn into the organized segment. Now, the unorganized sector will also be taxed.
Companies in sectors like plywood, ceramic tiles and even batteries could gain and create more jobs. Employment in the organized sector, is always better than employment in the unorganized sector.
Youth in India can expect jobs in the FMCG sector, consumer goods, cement industry, logistics and the automobile industry.GST will be a big boost to the ' Make in India' program.
Youth in India, it will soon be time to reap the rewards of GST. Cheaper branded clothes = a great shopping experience. Cheaper biscuits and cakes = great munching times. Cheaper small cars = a terrific driving experience. Cheaper scooters = fast rides. Friday nights = Great dining and movies. GST = Jobs...Jobs....Jobs....Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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