GST Articles
Here's how GST impacts you in your day-to-day life
Here's how GST impacts you in your day-to-day life
05/09/2017

As most of our readers are already aware, the GST council has finalised the GST rates across different goods & service categories. The tax range is divided into the different slabs i.e. 0%, 5%, 12%, 18% & 28%.

Let's see how your life changes with the introduction of GST and how much more or less you need to shell out from your pocket.

Footwear: Be ready to shell out more for footwear which costs more than Rs 500 as the GST rate is kept at 18% as compared to the earlier 14.41%. However, the rate for footwear costing below Rs 500 is reduced to 5%.

Garments: Buying your next shirt or trouser will cost you a little less as the GST rate for ready-made garments is reduced to 12% from the existing 18.16%.

Cab & taxi rides: Even booking your cab is slightly cheaper now as the tax rate is reduced to 5% from 6% for any taxi booked online like on Ola, Uber or Meru.

Airline ticket: There is no change for an economy flight ticket price but GST for a business class ticket will attract 12% rate.

Train tickets: There is hardly any change as far as your railway ticket price is concerned because the rate has increased to 5% from the existing 4.5%. There is a benefit given to the passengers traveling for business as now they would be able to claim the Input Tax Credit for their rail ticket expenses. Your local or sleeper class ticket will remain the same, but the first class/AC ticket price has risen.

Movie tickets: Watching a movie with a ticket price of less than Rs 100 will attract 18% GST but the higher ticket i.e. more than Rs 100 will attract 28% GST. In fact your ticket price will also depend on the state where you are watching a movie.

Premium on your Life Insurance policy: Due to the rise of 3% rate i.e. GST rate of 18% from an existing service tax rate of 15%, you will end up paying more premium for your insurance policies. The same has been kept for all the insurance categories i.e. life, health and general insurance.

Jewellery: Gold investment will be slightly more expensive due to a higher GST rate.

Buying real estate: If you are planning to buy an under construction real estate property, then you will stand to get more benefit than a ready to move in property. Your builder will get input tax credit and can pass on the same to you in terms or reduced prices.

Hotel stay: For a room rent of less than Rs 1,000, there wont be any GST, but in case it is more than Rs 5,000 then it will have a GST rate of 28%.

Buying a car: Most of the cars across different segments will become cheaper but the same will not be applicable for hybrid cars as the GST rate is 28% on all the vehicles irrespective of its make, model or engine capacity and also depends on a particular car segment.

Mobile bills: Your phone bill is set to rise by 3% because GST on telecom services is 18% than an earlier 15%.

Restaurant bills/ Eating out: It depends on the type of restaurant you are dining in, i.e. whether it is an AC or Non-AC restaurant and whether it serves alcohol or not. Dining at a five-star hotel is kept at 18% GST rate. The Non-AC restaurant is kept at 12% rate & a 5% GST for a small hotel, dhaaba and restaurant whose yearly turnover is less than Rs 50 lakh.

IPL ticket price & other events: Your IPL ticket or ticket for any other sports event will be charged 28% GST from an existing 20%. rate. But for theatre, circus, classical music program or even a folk dance function is kept at 18% GST which is lesser than the earlier rate.

DTH/cable services: The charges for your Tata Sky/ Dish TV or your cable operator will reduce slightly as the entertainment tax is also done away with.

Amusement park: The price for your amusement park ticket say Imagica or any theme park similar to that is set to rise due to 28% GST rate.

 

(The author of this article is Rishabh Parakh)

Source :  DNA

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