In the making since 2000, the Goods and Services Tax (GST) will finally kick in from Saturday, July 1. Touted by the government as the biggest tax reform since Independence, the GST is meant to boost growth and scrap local taxes that add to overhead costs and stymie businesses. The NDA government has planned a grand ceremony at the stroke of midnight on Friday to usher in the landmark taxation reform.
Here is a list of things you should know.
The job market is looking forward to a big boost from the new GST regime and expects over one lakh immediate new employment opportunities, including in specialised areas like taxation, accounting and data analysis.
Movie buffs are in for a surprise with the entertainment tax being replaced with GST. The average entertainment tax is between 35 and 55 per cent and are as high as 100 per cent, depending upon the state. Currently, Maharashtra charges entertainment tax of 45 per cent. From July 1, the tax charged on cinema tickets will be lowered to 28 per cent.
Dairy products and several mass consumption products have been exempted from GST while others are included in the five per cent bracket. The aim of keeping these products in the lower GST stabs is to create a common-man friendly GST regime.
The new tax reform Goods and Services Tax (GST) will definitely make your travel cheaper but if you are a luxury traveler it may cost you fortune. Considering transport the essential part of infrastructure, the GST council headed by Finance Minister Arun Jaitley has announced that the tax rate on the transport sector – rail, road and air travel – will be in the lower bracket of five per cent.
The Goods and Services tax (GST), which will be implemented from July 1, 2017, has already put the vehicle industry, especially fleet vehicles and app-based aggregators in a spot of bother. The worry arises from the goods and services tax (GST) regime as the tax burden, which is currently a value-added tax of 12.5-13%, will rise to 43%, i.e. increase of over 30%.
Leasing or sub-letting a property or a building or creating a tenancy or an easement right has similarly been brought under the purview of the GST. Granting someone license to occupy a property will also attract GST.
In a move that will benefit about 50 lakh central government employees and defence personnel, the Union Cabinet on Wednesday approved the recommendations of the 7th Pay Commission for higher allowances, including house rent allowance (HRA).
E-commerce websites like Amazon, Flipkart and Snapdeal are offering huge pre-GST sale on almost every product. With GST being rolled from July 1, customers will enjoy faster delivery of products all retailers will not have to file a separate paperwork for each state. This will help reducing time and effort and will benefit the consumer with faster delivery of services.
The new system will probably be implemented in a systematic way as customers may get rid of several indirect taxes including service tax, central sales tax, Value Added Tax (VAT), excise duty and octroi. There are several products that will attract zero per cent taxes.
It seems 2017 is a tough year for the restaurant and hotel industry, from banning alcohol at several food locations to allowing people to use the wash rooms. And here comes another announcement which will burn a hole in customer’s pocket while eating out. Giving us a hint that our government wants us to eat healthy and home-cooked food.
As the Goods and Services Tax (GST) policy is around the corner, the chemists are avoiding storing of medicines and drugs beyond one week in anticipation of any unfavourable changes likely to occur after the introduction of GST Bill.