HOW WILL GST AFFECT OUR DAY-TO-DAY LIFE?

GST is called the Levy on Goods and Services. It is an indirect tax that has replaced many Indian indirect taxes, such as excise duty, VAT, tax on utilities, etc. On 29 March 2017, the Goods and Service Tax Act was passed in Parliament and came into force on 1 July 2017. In other words, the production of products and services is subject to GST (Goods and Service Tax). India’s Goods and Services Tax Law is a comprehensive multi-stage, the destination-based tax imposed on any additional value. For the whole country, GST is a single domestic indirect tax statute.

In a nutshell, by being more costly, GST tends to be a mixed bag with some necessities becoming cheaper, whereas the others are likely to disrupt household budgets. The GST prices would also depend on whether a wealthy individual or a common man uses the commodity, with the suggested rates being: 5 percent, 12 percent, 18 percent, 28 percent. On almost 50 percent of products in the Consumer Price Index basket, including food grains, eggs, meat, milk, curd, salt, bread, fruits, vegetables, basic medicines, prasad, stamps, court papers, printed books, newspapers, bangles, silk and jute textiles, etc., there will be no tax (0 percent tax) on services such as religious/pilgrimage travel, Haj yatra, metro travel, education and healthcare w. Good news for travelers has also been removed from GST as hotels with tariffs below Rs 1,000.

To understand GST through the eyes of common eyes lets understand what things will get cheap and what things will get pricey-

 

Rise in Price Fall in Price
·        Electronics such as air conditioners, TV, refrigerator, vacuum cleaner, dishwasher, and washing machines

·        Phone bills and packages of the Internet

Ventilators, air coolers, lighting, water heaters, computer monitors, printers and other electronic entry-level goods.
·        Cigarettes/Tobacco, Pan Masala, Aerated beverages

·        Luxurious personal care items such as deodorants, perfumes, shampoos, creams for shaving, hair dye

·        Shopping Online

·        Tickets for movies priced at 100 or more (will be taxed at 28 percent)

·        jewelry in gold and gold

·        Commodities Such as soaps, hair oil, toothpastes,

·        medications/Pharmaceutical for example- Insulin

·        Articles of processed food, Biscuits

·        High-end hotels with Rs 5,000 plus tariff and liquor-serving restaurants

·        Air travel, rail transport and mortgage cab services

 

Ready-made garments, involving branded clothing till Rs 1000 only.
·        Wi-Fi, DTH, cable television and postal services

·        Small to mid-sized vehicles

Cab & taxi travels: Even scheduling your ride is considerably cheaper now since the tax rate for any taxi booked online, such as on Ola, Uber or Meru, is decreased to 5 percent from 6 percent.
Premium on your Life Insurance policy: Because of its 3% premium increase, that is Users would end up having to pay higher premiums on the insurance plans at a GST rate of 18 percent from a current service tax rate of 15 percent. The same has been retained for all the types of insurance, namely a life, health and general insurance Investing in real estate: If you intend to purchase a property under development, then you can stand to have more profit than an estate prepared to move. Your developer will gain an input tax credit and will be able to pass it on to you in terms of discounted rates.

 

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