GST: Less taxing in the long run

GST might be marginally inflationary at the start, but will result in a lower indirect tax burden

The goods and services tax (GST), a much-awaited and crucial reform, finally got implemented on July 1. It aims to provide a simplified single regime, in line with the framework applicable in at least 140 nations. We look at how the new regime will hit the pocket of different income groups.
 

 The new system offers a four-tier rate structure for both goods and services, based on the principle of ‘equivalence’. Efforts have been made to ensure different economic classes are not subject to tax at the same rate. Barring a couple of special cases, there are not many