BEGINNERS GUIDE FOR GST

 GST stands for Goods and Services Tax levied by the Government in a move to replace all of the indirect taxes. The main aim behind introducing GST is to fill in the loopholes of the current taxation system and to boost the economy.

Let us take a look at a few things that will have an impact because of GST:

Things that will get EXPENSIVE:-

1. Eating out (currently we pay 18.5% service tax and VAT but this rate is expected to increase by 2.5% i.e. it is expected to become 20%
2. Phone bills (An increase in tax rate from 15% to 18%).
3. Jewellery (it is expected to increase from 2% to 6%).
4. online shopping, banking and insurance (services provided by the banks that have a tax rate of 14.5% are expected to reach 18%) 
5.  travelling (service tax rate on the airline fares which is currently 6%-9% is expected to reach 15%-17%).

Things that will get CHEAP:-

1. Buying a car, television (from 24.5% tax to 18%-20% tax)
2. movie tickets (entertainment tax is likely to reduce by 2%-4%) 
3.  processed food (reduce from 24%-25% to 17%-19%).