How will the implementation of GST bill impact the lives of common people?

The implementation of the Goods and Services Tax (GST) in India has had a mixed impact on the lives of common people, reflecting both positive and negative changes.

Positive Impacts

1. Simplified Tax Structure:

   • GST has unified the indirect tax system, eliminating multiple taxes like CST, VAT, service tax, excise, SAD, and CAD, making the taxation process simpler and more transparent125.

2. Lower Taxes on Essential Goods:

   • Essential food items, medicines, and other Fast-Moving Consumer Goods (FMCG) are taxed at lower rates, typically between 0% and 5%, making these items more affordable for the common man14.

3. Reduced Prices on Certain Items:

   • Items like ready-made garments, certain types of footwear (below Rs 500), and cars (except hybrid cars) have seen a reduction in prices due to lower GST rates145.

4. Cheaper Public Transport:

   • Services like Uber and Ola have become slightly cheaper with a reduced GST rate of 5% compared to the previous 6% service tax14.

5. Increased Transparency and Compliance:

   • GST has improved compliance levels and provided a clear understanding of the tax paid by consumers, which can lead to better economic growth and reduced corruption123.

Negative Impacts

1. Increased Costs for Services:

   • Services such as banking, telecom, hospitality, and beauty salons have become more expensive due to higher GST rates. For example, telecom services now attract an 18% GST rate, up from 15% previously145.

2. Higher Taxes on Luxury Items:

   • Luxury items and services, such as hotel stays costing more than Rs 7,500 per night, business class air travel, and high-end footwear, have seen significant increases in tax rates, making them more expensive14.

3. Impact on Daily Expenses:

   • Eating out at restaurants, phone bills, and internet packs have become more expensive due to the increased GST rates145.

4. Inflationary Effects:

   • The Consumer Price Index (CPI) has seen an increase, indicating a rise in inflation rates, which can negatively impact the purchasing power of the common man, especially those in lower income groups25.

5. Initial Adjustment Challenges:

   • The transition to GST has led to some initial challenges, including higher compliance requirements for businesses, which can affect the prices of goods and services temporarily12.

Mixed Effects

1. Real Estate:

   • While buying an under-construction property may offer benefits due to input tax credits, ready-to-move-in properties do not see the same advantages14.

2. Air Travel:

   • Economy class air travel has seen a slight reduction in taxes, but business class tickets have become more expensive14.

In summary, the implementation of GST has simplified the tax structure and made essential goods more affordable, but it has also increased the costs of various services and luxury items. The overall impact is a blend of benefits and losses, with long-term benefits expected to outweigh the short-term challenges.