GST or Goods and Services Tax is one of the most prominent taxes in India. Actually it's a indirect tax which everyone has to pay. The number of Income Tax payer is quite low and thus government have to rely on GST for most of its earnings. And thus GST has been in place from the last so many years.
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At the starting, the roll out of GST was not that great, but as the time progresses it is getting streamlined and thus more and more people are coming inside the tax bracket mainly indirect taxes. As of now the GST have different rates which range from 5% to 28% and thus sometimes it become hard to know which tax is applicable where.
So now on 15th August, Prime Minister of India, Shri Naraendra Modi has announced a reform in GST where they are thinking of reducing the tax. Might be not sure, but they are changing it to just 2 tax slab 5% and 18%. As of today we have to pay GST on insurance also, so I think it can happen that the GST can be reduced from the Insurance too but these are speculation.
By October we will know what exactly are the changes in the GST rates as well as what all the reforms are coming on it. And because of that we have seen some rise in the stock market too. When the GST rates comes down the consumer might be able to spend more and that's good for the business and that's why the stock market was going up too.
I feel the GST should be removed from the essentials like the insurance and thus its actually good for most of the people who wanted to insure themselves. 18% is quite high, even though if it's not 0, make it 5% but not 18%.
