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.