R K Lakshman’s ‘Common Man’ walks into an electronics showroom, today.
Common Man: I want to buy an AC
Salesman: this is the model, Sir. Just, Rs.30, 000/-
Common Man: Oh!, has the price not dropped ?
Salesman: Why? NO
Common Man: GST Bill was passed yesterday. All TV Channels & newspapers said, ACs will be cheaper. Is it not?
For a Common Man – is there a victory in GST? Let’s look at it –
Mobile bills – go up
Internet bills – go up
Restaurant bills – go up
Insurance Premium Payments – go up
Loan servicing costs – go up
Hair cut at premium saloons – go up
Bottom-line, anyplace where there is a ‘Service Tax’ loaded, it is going to be more ‘Expensive’.
So, who is benefiting? Businesses.
When the ease of doing business & their input costs come down, due to a simpler tax regime, the possibility of them making ‘More Money’ increases.
Should I say, the Asset Class to park our money J
Common Man continues to pay common taxes (direct & indirect taxes).
Common Businesses might start making Uncommon Profits.
By the way, GST rates will be decided by a panel headed by the Finance Minister, Shri. Arun Jaitley.