The Goods and Services Tax (GST) will see the light of the day on July 1, 2017. It is India's largest tax reform after Independence. A total of 36 services come under the ambit of GST whereas 83 services including education, health care and religious pil
Insurance premium and credit card bills will attract 18 per cent tax rate under GST, a rise from the 15 per cent existing tax rate. (Graphics | Vijesh C K)
Hotel rooms with a tariff of Rs 1000-2500 will attract a 12 per cent GST. Rooms with a tariff of Rs 2500-5000 will attract 18 per cent GST, while room charges of Rs 5000 and above including will invite 28 per cent GST. (Graphics | Vijesh C K)
Restaurants with alcohol license will be levied a tax of 18 per cent (existing tax rate is 22 per cent). Catering services will attract GST of 18 per cent. Cheers! Eating food in non AC restaurants will be cheaper with the decrease of 1.5 per cent in tax under GST (Existing tax rate — 13-14 per cent) Also, tax on AC restaurants under GST has been reduced to 18 per cent from the current 22 per cent. (Graphics | Vijesh C K)
Mobile bills, internet plans, and DTH schemes will cost more. The tax rate under GST will be 18 per cent, up from 15 per cent earlier. (Graphics | Vijesh C K)
Train tickets and business-class air tickets will be costlier. Price of train ticket will rise from current service tax 4.5 per cent to 5 per cent under GST. Business-class air tickets will attract a 12 per cent tax rate. Fares of economy tickets will decline. Sleeper class tickets, metro ticket and seasonal passes will be exempted from GST. (Graphics | Vijesh C K)
The service tax which is 15 per cent on construction work contacts, will come to 12 per cent under GST. (Graphics | Vijesh C K)
