Eat In And Keep The Taxman Away

GST has been largely neutral or beneficial for consumers, but ‘luxuries’ are a bone of contention.

- Arindam Mukherjee

AMERICAN actor-comedian Chris Rock’s famous comment—“You don’t  pay taxes, they take taxes”—just about sums up the ordinary citizen’s feelings about the levies charged by the government on pretty much everything— from your income to the restaurant bill to the car you drive.

When India unveiled the Goods and Services Tax (GST) on  June 30 midnight last year, most people feared the worst. Months of decoding what the tax might look like had many worried; it’s an impression many consumers still carry a year later—that GST is burning a hole in their pockets as, on average, goods of daily use have become more expensive.

But a year later, there is a mixed reaction from experts and ordinary people regarding the actual impact of GST. Most experts Outlook spoke to were of the opinion that for most products and services, GST has remained neutral for most consumers, though some feel it has increased the net tax burden on many ‘luxury’ products.