GST Impact on Consumer Complete analysis

This post “GST Impact on Consumer Complete analysis” is describing how Goods and Services Tax affect various sectors. Simple examples will help you to understand easily and faster.

  • Footwear costing more than Rs. 500 attracted a GST rate of 18 percent from an earlier rate of 14.41 percent rate but rates for the footwear below Rs. 500 was reduced to 5 percent. So, one needed to shell out more for buying a footwear above Rs. 500.
  • With respect to the readymade garments it has been reduced to 12 percent from an existing 18.16 percent which would make them cheaper. This is a major relief for the trendy youth or a fashionable youth.
  • Taking taxi rides like Ola and Uber have become cheaper because it has been reduced from existing 6 percent to 5 percent slab.
  • The effective tax rate for the railways has increased from 4.5 percent to 5 percent in GST. But the Input tax credit can be availed for business trips and it will reduce the expenses.
  • Under the GST, the tax rate for economy class for flight tickets is set at 5 percent and for business class at 12 percent. But the business class trips can avail the Input tax credit so it becomes cheaper to travel and in turn it promotes airways.
  • Movie tickets costing below Rs.100 will be charged a GST rate of 18 percent but prices above Rs.100 are charged with 28 percent. So movie goers particularly in the western and northern part of India are worst affected as the ticket prices ranges from Rs.175 to Rs.300.
  • The premium amounts on insurance policies are to rise and an immediate impact can be seen on one’s term and endowment policy premia as the rates have been increased under GST across Life, Health and General insurance.
  • GST impact on your returns from mutual funds investments will largely be marginal as the GST will be charged on the Total Expense Ratio of the mutual fund.
  • Investment in Gold has become slightly expensive because there is a 3 percent GST on gold and 5 percent on making charges and the earlier tax rate was 2 percent.
  • Under construction properties will be cheaper than ready to move in properties. The GST rate for an under construction property is 18 percent but the effective rate on this kind of property which will be around 12 percent due to the input tax credit of the builder will avail of, financial experts claim.
  • The impact on education and health sectors for the consumers is nil as both these were kept out of the ambit of the GST implementation.
  • The staying in low budget hotels will be cheaper as there is no GST for the rent below 1000 rupees but the 3 star and 5 star hotel stays are to become costlier as the GST slab is 28 percent.
  • The buying of cars will be cheaper as the GST rate is 28 percent irrespective of the make, dimensions and engine capacity.
  • People have to pay more amount to their phone calls as they have to pay the tax rate at 18 percent when compared to the earlier tax rate of 15 percent.
  • Eating out with families in weekends will be less costlier than compared before as the rates are reduced to 5 percent.
  • Popular sports events like IPL now attract a GST of 28 percent when compared to earlier 20 percent and because of this rise the ticketing costs will rise and it affects the sports fans.
  • The GST rate for events like art festival, theatre festival and folklore festivals now attract 18 percent which is less when compared to earlier 20 percent which promotes these kind of events indirectly.
  • DTH connections or money paid to cable operators should reduce a bit as the tax rate is 18 percent when compared to earlier varying rates from 10 -30 percent in addition to 15 percent service tax.
  • The tickets to the amusement parks will now rise as the rate of tax has been hiked from earlier 15 percent to 28 percent under the GST structure.
  • The daily consumable items like milk, vegetables, cereals, fruits are exempted from the GST and it will have a very great impact on the consumer end.

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GST Impact on Consumer Complete analysis, GST Impact on Consumer Complete analysis, GST Impact on Consumer Complete analysis
GST Impact on Consumer Complete analysis, GST Impact on Consumer Complete analysis, GST Impact on Consumer Complete analysis
GST Impact on Consumer Complete analysis, GST Impact on Consumer Complete analysis, GST Impact on Consumer Complete analysis

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