GST: So What Will Change From Today?

Just Few hour Before The Big GST roll out and the big question on everyone's minds is, 'Weather I will have to shell out more from today?

Well, at quite a few places.

If you are going out for Dine Today

If you are dining out from today and settle your bill, your bill will reflect the GST instead of the service charge. In other words, this means a higher headline rate compared to the current service tax of 6% (after discounting for taxes on food) and VAT.

What will happen if you checking in a Hotel 

GST will replace service tax and local taxes (like luxury tax) on hotel bills settled any time From today even if you checked in days before. But if you booked and paid in advance for your hotel stay in July, you will not have to pay GST.

What Will happen if You are planning to buy you Dream Buy?

If you take a cab ride or planning to buy a new car. You have to pay your tax according to GST.

Welcome to the new era of GST.

You have to pay higher tax on diesel and mid-sized cars and Luxury cars to cost less.

Shop online past midnight

Quite a few articles will cost more if you shop online after the midnight GST roll out. So it makes sense to book your order today itself. The government has decided to not insist on e-tailers like Amazon and Flipkart deducting taxes in making payments to vendors, sparing them a complication.

What will happen if you book your flight from today?

If you're planning to fly away for a vacation, you are likely to pay slightly lesser for economy class flights tickets under the GST regime as the tax incidence comes down to 5 per cent from 6 per cent currently. However, if you travel business class, fares are likely to go up as the tax would increase to 12 per cent from the 9 per cent currently.

However, going forward, 

it is expected that due to reduced cost because of availability of GST credit on items hitherto not available, the price of services will also come down which will benefit the consumers," says Sandeep Sehgal, director-tax and regulatory at Ashok Maheshwary & Associates LLP.

After GST rollout, many items like footwear below Rs. 500 and garments could become cheaper. On the other hand, items like TV and small cars could become costlier.

Petroleum products such as petrol, diesel and aviation turbine fuel have been kept out of GST as of now. The GST Council will take a decision on it at a later date. Alcohol has also been kept out of GST

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A Quick guide To india GST Rates in 2017

The Goods and Services Tax (GST) has been one of the key things that has caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slab.

The government categorised 1211 items under various tax slabs. Here is a low-down on the tax slab these items would attract:

No tax

Goods

No tax will be imposed on items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, etc.

Services

Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST.

5%

Goods

Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats will attract tax of 5 %.

Services

Transport services (Railways, air transport), small restraurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

12%

Goods

Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones will be under 12 % tax slab.

Services

Non-AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab.

18%

Goods

Most items are under this tax slab which include flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors.

Services

AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST.

28%

Goods

Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, will attract 28 % tax – the highest under GST system.

Services

5-star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST.

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GST Bill : How it will be Beneficial to you ?

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The GST bill which was pending since so many years will be a reality soon. It will come into effect from July 1st .The GST will be a game changer for the Indian economy as it will abolish many indirect taxes and bring all of them in the single window.

What is Goods Service Tax (GST)?

GST or Goods and Service Tax is common tax system proposed by the government. As the name suggest it is a common tax for Goods and Services. In simple words today we are paying multiple taxes such as excise duty, custom duty, value added tax, octroi, service tax etc. Once GST is implemented all these taxes will be replaced by a single tax which is called as GST. GST rate is expected to be 18-20% which is lesser than tax burden of indirect taxes.

10 benefits of Goods Service Tax (GST) 

Elimination of Multiple Taxes

The biggest benefit of GST is an elimination of multiple indirect taxes. All taxes that currently exist will not be in picture. This means current taxes like excise, octroi, sales tax, CENVAT, Service tax, turnover tax etc will not be applicable and all that will fall under common tax called as GST.

Saving more Money

For a common man, GST applicability means the elimination of double charging in the system. This will reduce the price of goods and services & help common man for saving more money.

It is expected that price of FMCG products, small cars, cinema tickets, electrical wires etc is expected to reduce.

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Ease of business

GST will bring one country one tax concept. This will prevent unhealthy competition among states. It will be beneficial to do interstate business.

Easy Tax Filing and Documentation 

For a businessman, GST will be a boon. No multiple taxes means compliance and documentation will be easy. Return filing, tax payment, and refund process will easy and hassle free.

Cascading Effect reduction

GST will be applicable at all stages from manufacturing to consumption. GST will provide tax credit benefit at every stage in chain. Today at every stage margin is added and tax is paid on whole amount, in GST you will have tax credit benefit and tax will be paid on margin amount only. It will reduce cascading effect of tax thereby reducing cost of product.

More Employment

As GST will reduce cost of product it is expected that demand of product will increase and to meet the demand, supply has to go up. The requirement of more supply will be addressed by only increasing employment.

Increase in GDP

As demand will grow naturally production will grow and hence it will increase gross domestic product. It is estimated that GDP will grow by 1-2% due to GST.

Reduction in Tax Evasion 

GST is a single tax which will include various taxes, making the system efficient with very little chances of corruption and Tax Evasion.

More Competitive Product

As GST will address cascading effect of tax, inter-state tax, high logistics cost it will make manufacturing more competitive. This will bring advantage to businessman and consumer.

Increase in Revenue

GST will replace all 17 indirect taxes with single tax. Increase in product demand will ultimately increase tax revenue for state and central government.

Goods and service tax is a boon for the Indian economy and the common man. It is a welcome step taken by the government.