GST Slab Rate: The government has passed the GST bill. The GST will be implemented from April 2017. GST is sought to benefit the common man in many ways, although with the coming of the GST the price rates will be higher than before.
GST Slab Rate
The four-tier GST rates are decided at 5 percent, 8 percent, 18 percent and 28 percent. Th essential items will be priced at nominal rates and the luxury items will become pricey. The items on which an additional cess will be levied are aerated drinks, tobacco and luxury cars.
A revenue pool will be created from the collection of the cess. This will be used to compensate the states for any loss accruing to the states after the first five months of the implementation of the GST.
GST – Impact on Common People
Eating in Restaurants will become more expensive
Under the GST Bill, eating out in restaurants will become costlier. It is said that the prices at the restaurants will be fixed at 18 percent higher.
Phone Bills will be Costlier
The phone bills will get more expensive. There will be an increase in taxes, and these higher taxes will be passed on to the customers by the telecom operators.
Cars will become Cheaper
There’s a good news for the intended car buyers since the car prices are likely to be cut down under the new GST bill.
Readymade Garments will get Cheaper
The trendy and fashionable readymade garments will become cheaper under the new GST bill as the prevailing excise duty and VAT of 7.5 percent will be done away with.
Smartphones will become Expensive
The smartphones and the other phones will also get more expensive as 18 percent higher taxes will be levied on these.
LED TVs will get Cheaper
Currently, the tax levied on the LED TVs is almost 24.5 percent, while under the GST bill, the LED TVs will be taxed at 18 percent. Thus, under GST the LED TVs will be a lot cheaper.
Jewellery will get Expensive
Currently, only 2 percent of the total tax amount is being transferred to the consumers, however, in the GST bill the new provision provides for a transfer of 6 percent of the total tax amount.
Online shopping will get costlier after the implementation of the GST bill. It would be so because the e-commerce industry will have to pay greater taxes under the new GST rules and some of which will be passed on to the consumers.