How does GST rates impact your monthly household budget?
GST rates for 1,211 goods and all services have been decided. The tax rates under GST for all products and services will be at 5%, 8%, 18% and 28%. There is also a list of products that are termed essential and will attract 0% Goods and Services Tax.
GST rates for 1,211 goods and all services have been decided. The tax rates under GST for all products and services will be at 5%, 8%, 18% and 28%. There is also a list of products that are termed 'essential' and will attract 0% Goods and Services Tax.
Entertainment activities, household and personal care products will become cheaper under the upcoming regime. On the other hand, most of the services like mobile phone services, healthcare and transportation which are currently charged at the rate of 15% will cost more, as these are expected to attract 18% tax under the GST regime.
ALSO READ: GST council finalises tax on services; exempts education, healthcareArchit Gupta Founder & CEO, ClearTax, said that a household budget is likely to get cheaper once GST is rolled out on July 1, 2017.
ClearTax's analysis show that food items will get cheaper as they are housed under 5% GST as against 12.5% currently. Moreoever, entertainment under GST too has been reduced to a 28% GST as against 30% tax earlier.
Preliminary analysis show that a hosuehold currently spending Rs 74,350 per month will see a saving of Rs 2000 per month from July 1, 2017 as GST comes into force.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.