New Delhi: Government of India has decided to impose 5% GST on daily essential items like flour and rice like curd, lassi, paneer from 18th July. Apart from these essentials, GST has also been levied on hotel rent on hospital room rent. From businessmen to political parties opposed it. At a time when the country is already facing inflation, after the introduction of GST on these essential goods, the hardships of the common man have increased. Experts believe that due to this decision of the government, there will be a reduction in the purchasing power, which will have an impact on the GDP.
Ajay Kumar, who works as a hotel manager in Paharganj, says, “The government has increased GST. But customers argue with us to pay GST. Most people with rooms ranging from 500 to 700 come here. A part of it, our regular customers also say they fit.
ThePrint spoke to several hotel owners and managers in Paharganj. Everyone is worried that now after the introduction of GST, their business may slow down a bit.
The situation is also bad in other areas.
Whatever service or food and drink we consume, the government collects a certain amount of tax from us. We know it as GST, i.e. Goods and Services Tax. Until now there were some food and drink things that didn’t fit in. But on July 18, i.e. Monday itself, the Government of India announced the implementation of GST on some products.
From the shopkeeper to the common man, inflation has affected everyone’s household budget. The things on which the government implemented GST. At the same time, there are some products where GST was 12 percent earlier, it has been increased to 18 percent.
Good journalism matters, even more so in times of crisis
ThePrint brings you the stories you should be reading, from where they’re happening
We can only maintain this if you support us with our reports, writings and photos.
5 percent GST on taking more than 5 thousand expensive rooms in hospital, now 12 percent GST on atlases, all types of maps and charts, now 18 percent GST on tetra pack products, 18 percent GST even if a new checkbook is taken from the bank. 12 percent GST on hotel rooms that rent below Rs 1,000.
At the same time, there are some products on which GST was also earlier but now it has been increased which includes: LED lights, lamps, blades (which blade is surgical, razor or any other), paper, scissors , machine, spoons. , spoons with forks. Earlier, 12 percent GST was payable on these, which has now been increased to 18 percent.
However, Finance Minister Nirmala Sitharaman tweeted after the announcement that GST will not be collected for selling bulk products like flour, rice, curd, lassi. This will only apply to packaged and labeled products. The Finance Minister also wrote that if such food is sold in open air, there will be no GST charge. That is, if you buy them in the open, there will be no tax of any kind. These items include items like rice, flour, semolina, gram flour, mudhi?, curd and lassi. This is what happens with GST. But after that, how much change will we see in prices?
The @GST_Council is exempt from GST, all items specified below in the list, when sold loose and not pre-packaged or labelled.
They will not attract any GST.
— Nirmala Sitharaman (@nsitharaman) July 19, 2022
But why was there a need to implement GST on these things at this time and another route could be taken? Speaking to ThePrint, Arun Kumar, Economist, says, “GST collection is going very well at the moment. The government itself says that direct taxes are also being collected in record amounts at the moment. So what was the need to collect the GST on essential goods at that time?
“I think GST should not have been implemented on these essential goods at this time. The government estimates that Rs 15 billion will come here, the government could have collected that amount from other places. This will mean that the prices of essentials will increase which will affect the middle class and lower middle class.Their purchasing power was already affected which will fall further.
“Earlier the income of the people of the country was reduced, employment was reduced and at the same time inflation is continuously increasing. GST is an indirect tax. Whenever the indirect tax on a commodity is increased, its price increases as soon as its price increases. If the government had to collect taxes, it could have collected it through other means. Just like direct taxes could be increased. Taxes could have been imposed in areas where profits are high.
The traders demanded that the decision be postponed
Sajid, who runs a tea shop in Delhi, is also upset after the introduction of GST on milk. He says: ‘Now the price of milk will rise again. The price had increased only a few months ago, but we cannot increase the price of tea. If we increase, the customer will go elsewhere. There is no more profit, if the government continues to increase inflation like this, it will be difficult for the poor to live.
Not only customers, traders have also appealed to the government to withdraw this decision and reconsider. Speaking to ThePrint, the general secretary of the Confederation of All India Traders said, “With the imposition of this tax, on the one hand, the people of the country will get expensive items of daily necessities, on the other hand on the other hand the tax burden will increase. on the common trader. That is why there is an appeal to our government that this decision to impose GST be postponed now and only after discussing the consequences, the GST Council should take a decision
Also Read: ‘Vijayan govt pressure, fake cases’: Why ED appeals to SC to transfer gold scam out of Kerala