Blog Article

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:

Medicines

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%.

Gold

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.

Telecom Bills

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%.

Eating Out

1. Non-AC restaurants will be taxed at 12% GST
2. AC restaurants with liquor licence will be taxed at 18%
3. 5-star hotels will be taxed at 28%
4. Restaurants with a turnover of less than Rs 50 Lakhs will be taxed at 5 % (Optional under the composition scheme)

Hotel Bookings

GST rates on hotel service will depend on the type of rooms you stay.

1. If room tariff is less than Rs 1,000, your stay will be tax free.
2. If room tariff is between Rs 1,000 to Rs 2,500, a tax of 12% will be imposed.
3. If room tariff is between Rs 2,500 to Rs 5,000, a tax of 18% will be levied.
4. Luxury hotels, where tariffs are more than Rs 5,000, 28% tax will be applicable.

Cab/Taxi Rides

Cab rides will get cheaper as the incidence of tax will come down to 5% on cab aggregators like Ola and Uber.

Air Travel

1. Economic class travelling tickets will become cheaper and taxed at 5%
2. Business class traveling tickets will be taxed at 12%

Tobacco

1. Filter and non-Filter cigarettes will be taxed at 5% per 1000 sticks.
2. Cigars will be taxed at 21% per 1000 sticks.
3. Gutkha will be slapped with cess of 72%.

Daily Home Use Items

1. Sugar, tea, coffee and edible oil will be taxed a 5%.
2. Hair oil, soaps and toothpaste will be taxed at 18%.
3. White Chocolates, Perfumes, Beauty products, sunscreen, shampoos, Hair dyes, after-shave lotions, paints, Chocolates containing cocoa, varnishes, will be slapped with 28% tax.

Smartphones

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

Meat products/ services provided by veterinary clinics and animal slaughtering will be exempted from GST.

Ayurvedic Products

The Government has increased the tax cap of Ayurvedic products to 12% under GST than its former 8-9% tax.

Cement

Packaged cement will be taxed at 28% as against to its earlier tax slab of 31%.

Coal

Electricity generation using coal will see a reduction in tax cap and will be taxed at 5%.

Entertainment Tax

People who visit sporting events like IPL and theme parks will be taxed at 28%.

Maintenance Charges

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

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.

Non-Taxable Services

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.

How To Avail GST?

We at LegalDesk.com are ready to enable applicants for GST related online services. You can register and get your GST Registration Certificate without having to leave your home or office. Start your GST experience by clicking here.