News GST Rates Decided, 4 Slabs Ranging From 5 To 28%

[SRIRAM]

I am to afraid seriously

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[Aviral Sangal]

Even packaged drinking water will get costly. service tax is applied on sooooo many things. Railways, Airlines, Restaurant, Telecom, IT just to name a few.

 

[Joyous]

Even packaged drinking water will get costly. service tax is applied on sooooo many things. Railways, Airlines, Restaurant, Telecom, IT just to name a few.

ST is already levied on these areas but the concern is rates may increase currently from 14.5% to 18%

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[Technoglitch]

I'm okay with 100% tax on aerated drinks and other sugary drinks but not on essential commodities.

Posted using Entertainment Forum app

 

[IndianMascot]

My main product in business will be taxed more now. I was paying 12.36 ED and 12.5 Vat. Now it will be 28%+cess.

You will now be contributing more to nation. We are proud of you

 

[Aviral Sangal]

Haha

 

[Anish Pai]

Will GST also include SB Cess and KK Cess ??? I dont think so. Also Service tax will be no more.

It will be GST all alone. That is 5%, 12%, 18% and 28%.

 

[Anish Pai]

Most manufactured goods are expected to turn cheaper while services will become more expensive with the introduction of the new goods and services tax (GST) regime.

For manufactured consumer goods, the current tax regime means the consumer pays approximately 25-26% more than the cost of production due to excise duty and value added tax. With the GST rate expected at 18%, most goods are expected to become cheaper.

• Prices of cars, two-wheelers, SUVs may drop.
• Movie ticket prices may come down due to lower entertainment tax
• Electronics items like fans, lighting, water heaters, air coolers, etc. could get cheaper

The effective service tax rate at present is 15% and it applies to almost all services other than essential ones such as ambulance services, cultural activities, certain pilgrimages and sports events. If GST is implemented, this rate will increase to 18% making services more expensive. Consequently, eating out, staying at hotels and air travel will turn costlier. Similarly, insurance premiums and investment management which attract a service tax currently, will also become costlier with the higher rate of GST.

According to an HSBC Global Research report services would see a rise in tax rates while manufactured consumer goods may see a fall. The two are likely to offset each other resulting in a limited net impact on inflation based on the consumer price index.

• Hotel and restaurants may become dearer
• Your mobile phone calls may get costlier as service tax will go up
• Airline, train tickets may become more costlier due to increase in service tax

Currently, a consumer pays 25-26 per cent tax over and above the cost of production due to excise duty (peak of about 12.5 per cent) and value added tax (VAT). While there is no indication of what the GST rate will be, experts put it between 18 and 22 per cent which will, in all likelihood, make basic goods cheaper.