Business Mantra News
The Goods and Service Tax implemented from 1st July 2017 has subsumes a number of indirect taxes in India. Custom duty is the only indirect Tax which does not come under GST.
The incorporation of GST has surely reduced the toil of Finance Minister in the Union Budget, 2018 by doing half of jobs of fixation of indirect taxes.
GST council is entrusted with the job of fixing tax rates of goods and services.
In Pre-GST era, the Union Budget needed to apprise dozens of indirect taxes, before allocation of fund.
In First Post GST Budget, the Finance Minister has to look after the direct tax and custom duties.
The merger of Railway budget with the General Budget also holds significance in the budget of 2018-19.
This may lead to increase the burden of union budget 2018.
Earlier when GST was not implemented, the union budget used to connect the masses for opinion of common people was taken before presenting proposals in new budget. As the Budget used to contain the lot of declarations relating to daily use commodities for common man. But from this budget of 2018-19 onwards, there will be little for common man as all the common use items has come under indirect tax.
In this year budget, the finance Minister will not be able to present sops and relief on daily use items comes under indirect taxes.
Now it is the GST council who decides the tax rate of goods and services.
The general people and the common man will wait for the budget 2018-19 for changes in Income tax threshold limit and changes in the direct tax rate structure.