GST rates are fixed and it a good news for the common man. As a rider tax on luxury goods has been fixed at 28% and that is not meant for middle class, lower middle class and the people below middle class. In the earlier budgets and change in tax structure all saw that the rich is becoming richer and the poor remains poor. It is time to remove such a dictum as we see big tax reform and the mass use items to be taxed at 5% and zero tax will be imposed on food items. This will help to reduce inflation and the items used by lower middle class will cost less. Such a change in tax structure ought to have come a decade back at least to give much needed relief to the people. As the structure was going up and the oil prices shooting up, the prices of commodities was escalating like anything and forcing people to consume substandard commodities. The people friendly new structure will see that the outgo for the common man will come down drastically and that is supported by the zero tax rate on the Consumer products index basket, including food grain items used by the common man and that is great relief indeed. If GST is implemented as per the plan then there be a reduction in prices of essential commodities.
(The views expressed by the author in the article are his/her own.)
