Between Bread And Diamonds: A Critical Study Of Taxation On Essentials And Luxury Goods In India
- IJLLR Journal
- 1 minute ago
- 2 min read
Kashish Vaishnavi, Symbiosis International University
“The measure of a society is how it treats those at the bottom, even when taxing those at the top.”
ABSTRACT
The GST in India was a grandiose concept which is a single unified market wherein social equity and fiscal efficiency are both considered. It is structured in a multi-slab form with zero taxes of the basic needs such as unbranded food grains and medicines to 28 per cent tax of high luxuries such as luxury cars and jewellery and high-quality electronics with the aim of taxing according to the available income. But, practically, the system is generally ripped apart on the question of equity versus simplicity. Goods that are borderline such as packaged bread, brand milk, a herbal health drink or a mid-price personal care product go through a grey area of a necessity and a luxury. Such ambiguity creates conflicts, courtroom contests and governmental bureaucracy and prompts companies to re-invent products or find favourable labels. These issues are severely debated in the paper, and the paper looks into how various slabs can accidentally result in retrogressive outcomes, contribute to compliance price, and distort market behaviour. It is also comparable to the European Union, Australia and Canada where the stringent exemptions and clear classification regulations reduce controversies and safeguard necessities. The study promotes a less complicated system of GST founded on values, which involves a limited set of zero necessity, predictable expenses, and select social security. India can now move a step closer by ensuring that democracy and equity are an inherent constituent of its taxation regime so that diamonds can indeed be taxed and bread retained affordable, the constitutional promise of equity and efficiency and one national market.
Keywords: Goods and Services Tax (GST), indirect taxation, essential goods, luxury goods, tax equity,
