The Goods and Service Tax (GST) has been one of the key things that has caught attention of the Indian business market. With a lot of changes over a period of intense reviews and non- acceptance by many business sectors, the Government has finally placed 1211 items under various tax slabs. A large number of items are now placed under the 18% GST rate
List Of Costlier And Cheaper Items Under GST:
A 5% tax cap has been thrown on life-saving drugs that treat dangerous diseases like HIV-AIDS, diabetes, tuberculosis and Malaria. Animal or Human Blood Vaccines will be taxed at 5%, while Ayurvedic, Unani, homoeopathic siddha will be taxed at 12%. Nicotine polacrilex gum is the only medicine or pharmaceutical product which is taxed at 18%.
Cars And Bikes
All cars fall under luxury category of the GST while bikes which power more than 350cc engines will be taxed at 31% under GST. Cars will be taxed at 28% depending on the size, extra cess will be imposed. Cars under four-meter length driven by petrol engines which are not more than 1.2 litres / diesel engines not more than 1.5 litres will be taxed at 28%. Mid-sized luxury cars and SUVs will be raised to 48-55%, while hybrid vehicles are taxed at 43%.
The GST Council has taxed the precious metal at 3% and on June 3 the Government placed it under a new tax category for Gold, Diamonds and silver. With 3% GST, Gold will become expensive.
Mobile and internet bills will be taxed at 18%. Currently there was a 15% tax slab on Mobile and internet bills.
Insurance And Banking Charges
Health, car and term insurance will be taxed at 18%, while transactions and other banking related fees are said to go up to 18%.
- Non-AC restaurants will be taxed at 12% GST
- AC restaurants with liquor licence will be taxed at 18%
- 5-star hotels will be taxed at 28%
- Restaurants with a turnover of less than Rs 50 Lakhs will be taxed at 5 % (Optional under the composition scheme)
GST rates on hotel service will depend on the type of rooms you stay.
- If room tariff is less than Rs 1,000, your stay will be tax free.
- If room tariff is between Rs 1,000 to Rs 2,500, a tax of 12% will be imposed.
- If room tariff is between Rs 2,500 to Rs 5,000, a tax of 18% will be levied.
- Luxury hotels, where tariffs are more than Rs 5,000, 28% tax will be applicable.
Cab rides will get cheaper as the incidence of tax will come down to 5% on cab aggregators like Ola and Uber.
- Economic class travelling tickets will become cheaper and taxed at 5%
- Business class traveling tickets will be taxed at 12%
- Filter and non-Filter cigarettes will be taxed at 5% per 1000 sticks.
- Cigars will be taxed at 21% per 1000 sticks.
- Gutkha will be slapped with cess of 72%.
Daily Home Use Items
- Sugar, tea, coffee and edible oil will be taxed a 5%.
- Hair oil, soaps and toothpaste will be taxed at 18%.
- White Chocolates, Perfumes, Beauty products, sunscreen, shampoos, Hair dyes, after-shave lotions, paints, Chocolates containing cocoa, varnishes, will be slapped with 28% tax.
Under GST rates smartphones will attract 12% tax cap. Earlier 2% central excise duty was imposed on smartphones besides valued added tax (VAT) that vary from State to state.
Meat products/ services provided by veterinary clinics and animal slaughtering will be exempted from GST.
The Government has increased the tax cap of Ayurvedic products to 12% under GST than its former 8-9% tax.
Packaged cement will be taxed at 28% as against to its earlier tax slab of 31%.
Electricity generation using coal will see a reduction in tax cap and will be taxed at 5%.
People who visit sporting events like IPL and theme parks will be taxed at 28%.
Flat owners paying more than Rs 5,000 monthly for maintenance, stamp duties and utility charges will be taxed at 18% under the GST.
Non-Taxable Goods And Services Under GST
Non-taxable goods such as meat, fish, chicken, eggs, milk, butter milk, curd, honey, fresh fruits and vegetables, flour, bread, salt, stamps, judicial papers, printed books, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery, Kajal, Children’s drawing or colouring books, and Human hair will be exempted from GST.
Rough precious stones and semi-precious stones, hotels and lodges with a tariff rate below Rs 1,000 are exempted from GST.
The GST is said to be a game changer for the Indian market, but it will help the middle class gain as well as loose from it.
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