GST and its impact on everyday life
GST and its impact on everyday life
It has been more than 2 months since introduction of GST. With things getting clear day by day and people getting accustomed to the new tax regime, let us see how your life changes with the introduction of GST and how much more or less you need to shell out from your pocket.
My dear sharp-minded citizens,
With the dawn of GST era, many of the basic prices for many of the items have changed...
Out of many items, here I have covered some...
Footwear: Be ready to shell out more for footwear which costs more than Rs 500. 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 thus making it costlier.
Train tickets:
· There is hardly any change here because the rate has increased marginally to 5% from the existing 4.5%.
· However, there is a benefit given to the passengers travelling 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: If ticket price of a movie is less than Rs 100 it will attract 18% GST but if the higher ticket is i.e. more than Rs 100, then it will attract 28% GST.
Premium on your Life Insurance policy: With an increase of 3% from an existing service tax rate of 15%, you will end up paying more premium for your insurance policies. It has been kept for all the insurance categories i.e. life, health and general insurance.
Jewellery: Woman’s best friend 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 because your builder will get input tax credit and can pass on the same to you in terms of reduced prices.
However, this does not apply to a ready to move in property.
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 luxury cars as the GST rate is 28% on all such vehicles irrespective of its make, model or engine capacity.
Mobile bills: Your phone bill is set to rise by 3% because GST on telecom services is 18% which earlier was 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.
So as you can see, some things have become cheaper and some have become dearer. But I’m sure GST will surely outweigh all its disadvantages in the longer run.
Wishing you very good luck and happy shopping...
