The cost of goods and services tax (GST) has been raised from 12% to 18% . The most recent GST hike, like Ram Chandra, has affected people from all walks of life .
LUCKNOW: As per the cost in March, Ram Chandra (56), a farmer in Dubagga, had gathered Rs 46,000 from savings and borrowings to purchase a submersible pump.He returned to the shop once more recently and discovered that the cost of the goods and services tax (GST) has been raised from 12% to 18%.I rarely make a living off selling crops at the end of the season because I have to pay rent to use a lifting pump to pump water from the canal for irrigation.I committed to investing in a submersible pump this year so that revenue could increase in the coming years, but now it seems impossible, said Ram.In addition, monthly costs have increased by 15-20% for items that are commonly used such as wheat, dairy products, ink, pencil sharpener, and LED lights, as well as a hospital bed, hotel room, and water pumps.This is happening, according to people, when inflation is already high and wages have fallen as a result of the pandemic.Raj Karan Yadav (72), a retired teacher, said that Bank cheque books have been classed in an 18% tax bracket, which is unfair to elderly and retired people who have no income and are not tech savvy.Rahul Verma, a rising sportsman, said that dairy products have been taxed at 5%. A litre of milk costing Rs 55 was previously available, but today it costs around Rs 60.I would have to spend Rs 150 more per month on milk alone.The diet would cost an additional Rs 2,000 per month if I include protein rich dairy products, he said.Even after reducing unnecessary items, the groceries that used to cost around Rs 6,000 per month are now worth around Rs 7,000, according to Kanchan Shukla (49), a homemaker from Narhi. According to Mohmmad Iqbal (35), a dairy owner in Indiranagar, the GST increase is negatively impacting sales and impacting small business units like mine because of the extra expense of bringing in a staff for record keeping of items that were otherwise exempted.Sanjay Gupta, the president of UP, said, Small businesses will first need to register for GST registration before claiming tax reversal later in the process, which is a lengthy and laborious process.