The GST Tax

What is the GST tax?

Both of the parliaments passed and also Applied from 1st of July 2017 one taxation system who affects peoples life named the GST Tax. so many aspects and assumptions for economic growth in a long time from the newly implemented system. In GST are some rate categories Like 0 %, 5 % ,12 %, 18 %, 28%.

Economic Experts assumes Newly implemented taxation system will increase the GDP(Gross domestic product) approx 2 percent. As per assumptions in long time effects, GST Motivates the economy that will increase the positive approach in all sectors.
Here in easy word what GST effects to your life

Following Services that became cheaper as per government
1. visit for eat in hotels/restaurants may turn cheaper in some states.

2. According to council has decided to include ET(Entertainment Taxes) in GST, so movie tickets turn cheaper across the country.

3. Cab and Taxi ride Ola or an Uber will be cheaper because the tax rate has come down to 5 percent from an earlier service tax 6 percent for a cab booking made online.

4. Education and Medical sectors have been kept out from the GST so both the starting education & healthcare is exempt from GST. It means a consumer will not pay any tax for the money you spent on these services.

Following Services that became expensive include:
1. Mobile bills

2. Investment management and banking services

3. life insurance plans premium

4. Online ticket booking services like- IRCTC, Air Ticket

5. Basic luxuries services such as DTH.

These Goods are completely out of the GST :
1. The unprocessed cereals, rice & wheat etc.
2. Vegetables (fresh), fish, meat, the unprocessed milk etc.
3. Unbranded Atta, Besan or Maida.
4. Kid’s drawing books/ coloring book.
5. Sindoor/Bindis, bangles, etc.

Following Goods that became cheaper as per government
1. Buying a Property became cheaper.

2. Footwear & Apparels/Garments Below Rs. 500/- rates have been reduced to 12% from an existing 18.16%.

Following Services that became expensive include:

1. gold investment will become the little bit costly because there will be 3 percent GST on pure gold & 5 percent on the making charges.

2. Footwear costing above RS. 500/- will have a GST rate of 18 percent from a previous rate of 14.41 percent.

3. cigarettes, aerated drinks, tobacco products became costly.

BASIC Terms of GST

HSN Code in GST:-

HSN  code is an Eight digit code for identifying the appropriate tax rate of Goods And Service Tax on different items according to CGST rules.

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Comments

    • Jack
    • November 20, 2017

    very nice knowledge portal regarding GST System in India.
    Keep it up…

  1. thanks for your appriciation.

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