Now that GST has paved its way into the Indian economy, the common man will be the first one to be affected by this momentous change in the financial structure of the country. From clothes to luxury items to availing of services, every realm has witnessed the advent of GST in full force.
While earlier, you were encumbered with Service Tax and VAT @ 18.5%, now you would incur service charge along with Goods & Service Tax of 18%.
But who is to tell you the precise changes that you might not have noticed till now after roll out of GST?
In how many ways is the implementation of GST affecting your daily life?
Well, fret not!
Here’s how GST will affect your daily life.
It’s good news! While VAT and Excise Duty of 12.5% has been abolished, cars will be significantly cheaper including SUVs, hatchbacks, sedans etc. Now, you don’t need to save each penny for buying a luxury car.
If you are fond of jewellery, there’s some sad news. On jewellery, the earlier tax levied was 2% but now buying jewellery under GST would be something to consider since under GST, the tax rate has jumped
up to 6%.
Now, you would have to start giving thought before changing your phone on a whim as smartphones would be getting costlier. While earlier the tax rate charged for buying a smartphone was 12.8%, now it has increased to a whopping 18%!
Get your shopping addictions to the new level. Readymade clothes have become inexpensive as there is no Excise Duty of 7.5% or VAT of 5%. Shopping has not got Easy!
- Online Shopping
Discounts in online shopping will reduce due tos increased tax burden on the suppliers. Be it clothes or home decor, enjoying the benefits of steep discounts will not be as frequent as it was in the past.
- Phone Bills
Apart from smartphones, phone bills have become expensive too. While earlier, you had to pay tax of 15% on your phone bill, now you would need to pay 18% tax rate on the bill. This also applies to Broadband bill payments.
- LED TVs
Even if you are not really fond of larger than life size TV sets or haven’t thought about changing that old set in your house, GST is giving you an opportunity
to enjoy the experience of a home theatre. Tax rates have been slashed from 24.5% straight down to 18%.
- Train Travel
Travelling expenses are soaring to new heights. With the GST roll out, travelling in sleeper coach would not be affected but those travelling in AC coach would have to shell out more. The tickets costing approximately Rs. 131 prior to GST will now cost Rs. 150.