It is believed that the implementation of Goods and Services Tax (GST) in India is the biggest step towards independence towards tax reform. GST is going to come into effect from 1 July. It is very important for you to know how this will affect your pocket due to its implementation. This is a tax that will liberate tax net. After GST, many things will be cheaper, while some pockets will be heavy but the biggest benefit will be that the complete system of tax will be easy. So let’s see what will be cheaper and costly
These goods and services will be expensive
After the GST is implemented, gold can be expensive in most parts of the country. At this time, gold is charged 1 per cent of excise duty and 1 per cent VAT by the States. Keeping these rates in mind, we have decided to impose 3% tax on gold and gold ornaments.
– Telecom services will be expensive under GST. The government has kept it under 18 per cent tax. Currently, there is a 15 percent tax on mobile bills.
Taking an insurance policy will be costlier. GST Council has decided to take the tax on this at 18 per cent.
-After GST is implemented, the restaurant will become expensive.
Under GST, 28 percent tax has been levied on all cars, while small cars have cess of one per cent, SUVs and other luxury cars have been ceded to 15 percent.
-GST will have 12 percent tax on mobile phones This will increase the tax on mobile handsets in most states by 4-5%.
On the other hand products like Shampoo, perfume and makeup, 28 per cent tax was to be given, while 22 percent taxes were taxed on it.
-Tour and travel will be a bit expensive after the GST is implemented. 18% tax will be charged on tour and travel in GST. Now it is 15 percent, that is, the tax rate will increase by 3 percent.
GST will be charged at the rate of 5% on all types of clothes, whereas GST will be applicable at the rate of 5% for clothes up to Rs. 1.
It has been decided to impose a 5% GST on Footwear with less than Rs. 500, whereas, Sandal Shoes up to Rs. 500 were up to 9.5%.
-GST slabs have been fixed at 18 percent on the basket. The average amount of biscuit, on average, was Rs 2.6 percent before the first rupee, and the tax on the biscuit was much higher at 23.11 per cent.
Under the GST of 5%, on sugar, edible oil, natural tea and coffee, the tax will be applicable, at present, this rate is 4 to 6%.
-Hair oil and soap will also be cheaper. According to the rates decided by the GST Council, taxes will be charged at the rate of 18 percent under GST.
-GST Council has kept grains away from the GST, meaning that no tax will be levied on them.
-Mitt, milk, curd, fresh vegetables, honey, properties, prasad, kumkum, bindi and papad have been excluded from the GST scope. Due to this, these things will be cheaper.
After coming to GST, coal will be cheaper. Council has fixed GST rate of 5 percent on coal.
The rate of tax on processed food, confectionery products and ice cream would be 18 percent, which was 22 percent earlier.
– Motorcycles may also be cheaper in GST. The rate of tax will be reduced by about one per cent to 28 per cent.
– After the implementation of GST from July 1, the economy class will be cheaper in the economy class. For economy class rent, the GST rate has been fixed at five per cent, it is now six per cent.
-Smartphones will also be cheaper in GST These are tax 13.5 percent tax. GST is proposed to impose a 12 percent tax on these.
Under the GST, it will be cheaper to book a taxi with companies based on AAP-based taxi services like Uber and Ola.
– 11.5 per cent on kitchenware, the light fitting will now cost 7.25 per cent less tax.
-Rial estate area is excluded from the GST scope, but the properties under construction will be taxed at the rate of 12%. At present, it is 15% service tax.