Household items are going to hole your pocket soon because FMCG companies agreed on 15-18% tax on the items. FMCG manufacturers see a spurring growth after a uniform tax slab is implanted. Though there are a lot of confusions debates, have been heating up between States and Centre on tax money distribution pattern.
The whole structure of the GST bill is yet to be set. In between some states, basically, the states are being ruled by the oppositions started questioning the motive of the bill though none of these has officially opposed the bill.
GST aims for a single tax payment window for the manufacturers and service providers. It will provide relief from the individual tax slabs of every state thus makes the whole process of taxation simple and lucid for the manufacturers.
Now, the million dollar question comes- why?
Our Prime Minister Narendra Modi has been visiting many countries and has been meeting all chairmen and CEOs of the blue chip companies around the world for bringing foreign investment in India. But without a proper tax structure, it’s really impossible to attract the big investors. GST aims to resolve this issue.
Frankly speaking till now, the tax structure is one of the big issues in India, even Amazon which is a subsidiary of the Jeff Bezos lead Amazon Inc. told Government of India to make the taxation simple and easy otherwise foreign companies like Amazon (especially those which are retail sector) are facing a lot of difficulties.
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A nod from the Indian manufacturing sector (FMCG sector) is a big plus point for the centre in this debate but a lot of issues to raise the eyebrow for the middle-income group in India.
There is a very big chance that prices of the household items will go up and it may affect the monthly budget of the common men badly.
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