GST will be beneficial for lower and lower middle income classes: ADB

In India, commodity and service tax will benefit people of low and low middle income groups as it is likely to lower tax rates on goods. This information came out through a blog printed on the Asian Development Bank website. This blog, written by Professor Fellow Mukul Asher of the Liu Kuan Yu School of Public Policy, said that the negative effects of the goods and services tax (GST) on the "lower part" of the population will be seen. It has been written in this blog that in general GST will reduce tax rates compared to earlier, while tax rates on services are expected to increase. It says that as the extension of house hold has been done towards Higher Income Bracket, the share of the housing budget on the services will increase, while its rates will fall in the commodity.


                                                     

It was written in this blog, "As noted above, low and low-income families will see lower tax burden in the gross scenario, whereas opposite middle income and higher income households will see the opposite situation. It will significantly reduce the negative impact on a lower part of the population. "
It is worth noting that on July 1, only the goods and services tax (GST) was enforced across the country, in which tax rates were determined on nearly 500 services and more than 1200 items.