Why do the services cost more after GST
I find it strange that most product and especially the services now cost more with GST to the end user. The suppliers have simply used the GST rate applicable to their product or services without any discount to the fact that they are getting input credit also. This would have added to their profit margin at the expense of the end consumer. I understand that in a free economy this would get adjusted in long-term by market forces but usually, most markets are not as free as per the textbook definition.
What surprises me that even the government departments and PSU like public sector banks and post office have increased their charges blaming it to GST, and the government is quite about that. If I believe the prime minister and finance minister, the net tax should have come down after GST, and the end consumer should be paying less, but unfortunately, that is not happening.
I hope that someone in the government looks at this anomaly and takes action.
What surprises me that even the government departments and PSU like public sector banks and post office have increased their charges blaming it to GST, and the government is quite about that. If I believe the prime minister and finance minister, the net tax should have come down after GST, and the end consumer should be paying less, but unfortunately, that is not happening.
I hope that someone in the government looks at this anomaly and takes action.
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The Modi govt. has rewarded the traders with the GST windfall, keeping 2019 elections in mind. The trader can coolly pocket the modvat without giving the benefit to the consumer, without anybody being the wiser. It was the large automobile companies, who actually did pass on the benefit to the buyers, but the govt. chose to penalize them, by increasing their GST percentage. Even for restaurants, they came out with the easy solution of taking away their modvat benefit, penalizing the end consumer all the way. Presuming all the traders to be Honest Joes, believing in good faith that the modvat will be passed on to the end consumer, the govt. increased the percentage of GST vis-a-vis VAT on all services. For example on telecom we used to pay 14.5% VAT and now 18% GST. While the service provider gets the modvat, the consumer pays more, without any benefit.
Oct 28
"With better tax collection and compliance, the other Tax on incomes is being progressively reduced." We will never get any updates about better tax collection and compliance. And which other tax has been reduced ? Nothing. In fact, we will witness only increase in other tax and petrol prices. All these promises of better tax collection and compliance and consequent reduction of other tax, will be thrown to the winds and conveniently forgotten and we all know public memory is very short.
Oct 28
Mr. Dixit's observation as far as Service Tax is concerned n his hope for rolling back the same would point out that GST's first slaughting was this service tax which was increased from 15% to 18% n that was strategic since service tax is a wide spread tax in everybody's life every moment and does not linked with any other criteria of that individual. That's why when conciously it was increased where is the question of rolling out. Mindful due its nature how in quick succession the said Service Tax increasecd from 10% to 15% addding cesss' etc n then now to 18%. Feel it painful when the Peoples' Represntative who all speak always for the People all the time show the cunningness n fitness of a business man like who take their consumers' wisdom always at bay. Aware about the pressure of the Patriotic People of the Nation on the floor of our Parliament for a hike of their remuneration to a Lakh at least to match the same with their Secretaries n to achieve that to whatever extent to go let it go but caring the indivduals' self-respect. In some other place asked for an exemption,total, of this for our Sr.Citizens since can not overlook the necessity of interest rate-cut for overall health for desired progression of our economy which in contrary to the interest of this section of our population to whom again we do hv some duty rpt DUTY N NOT an alm. Hope an immediate action from the Authority.
Oct 28
After GST in the name of compliance these business people riding innocent public and in actual they never pay any tax !!
Oct 25
Fine example is Builders. Earlier they use to charge 4.5% Service Tax and no set off.Now they charge 12% and get input Tax credit which means they pocket large sum as they are not paying Excise Duty, cess, vat and toll tax. buyer pay this tax now.builder is very happy.
Oct 25
I would suggest that rather than just making a statement, why not give some specific examples for what is being claimed? What I know is that one of the main reasons for so-called increase in cost of services for consumer is the fact that no service provider accounted for GST or other taxes prevalent earlier. Hence the Country was losing money. Further the service providers never accounted for their incomes and never came under the tax net. Now they cannot easily escape this. The most important aspect of GST is that Black money would get reduced. Nothing can ever be eliminated, but it can surely be reduced. Further, I find that no one is comparing the earlier prices of any article or service after Sales Tax or VAT was added to the price. If you now compare it, the earlier price + Tax was higher than current price+GST. Further, with better tax collection and compliance, the other Tax on Incomes is being progressively reduced. So overall availability of money for any person would be highere then earlier. I would only suggest to all my friends is that let us THINK before we post improper ideas.
Oct 25
Request to share list of goods and services which have been, post GST, cheaper to the final consumer.
Oct 25
I have bills pre and post GST implementation of one UDUPI restaurant in Mumbai and though post GST the cost of food item is unchanged GST @18% has been levied extra and cost to consumer has gone up by 18%.
Oct 25
Sir, I have compared the prices prevailing in the restaurant as on 30th June 2017 and as on 1st July 2017. The comparison is posted on my blog. It can be seen that the prices have increased by 30-40% post implementation of GST. The major increase was due to profiteering in the name of GST. The restaurant industry pre-GST was taxed at 12% for home delivery food items and it is 18% post GST for home delivery items.
Oct 25
