Since the implementation of GST in India, most of the people are still wondering how it’s going to affect their daily life. Let’s take a brief look on the goods and services which will be cheaper, or more expensive with GST.
Earlier, you had to pay additional service tax and VAT of 18.5% on your food bills. But now, you will incur service charge, along with a fixed GST of 18%. Though the VAT and service tax have been abolished completely, the service charge won’t fail in making you realize its presence on your checks.
Thankfully, you can now buy your favorite ready made dresses and suits from the best brands at cheaper prices. There won’t be any excise duty of 7.5% and VAT of 5%. Say, if you pick a dress of Rs. 2000, you will be bound to pay Rs. 2240 instead of Rs. 2250. We can say that GST has made it easier for us to shop the best outfits at cheaper prices.
Before the introduction of GST, people were supposed to pay 15% tax on their phone bills and broadband bill payments. But now, they will be paying 18% tax on their respective bills. For instance, if you paid Rs. 150 as tax before on your broadband plans of Rs. 1000, now you’ll be supposed to bear a tax of Rs. 180 on the same amount.
GST has brought good news for all those who were saving pennies to buy their own car one day. As per the experts, the cars will be readily cheaper than before. By putting an end to VAT and excise duty of 12.5%, most of the luxury cars, hatchbacks, sedans, and even SUVs will face a drop in its former prices. Top bosses believe that tax competitive rates will reduce prices for consumers.
Alike ready-made clothes and cars, people can now get hands on LED TVs as well. Experience the crystal clear pictures and amazing sound quality by purchasing LED TVs at lesser prices. As the tax rates will be reduced from whopping 24.5% to only 18%, the customers will certainly save a lot on these premium quality LEDs from various brands.
Sadly, the price of smartphones will shoot up with GST. Earlier, one had to pay a tax of 12.8% on buying his new smartphone. But now, with increase in GST to exactly 18%, the prospective buyers should be ready to spend a little more for laying hands on their beautiful smartphone.
The financial experts have mentioned that before GST, the customers were liable to incur only 2% tax on jewelry. However, it may reach the tax bracket of 6% now, thereby making it more difficult for the buyers to invest in gold, and silver.
You may think of taking a break from online shopping as you may have to shed some more money while buying online shoes, accessories, clothes, home décor products, etc. The online retailers may avoid offering discounts on almost every second online product due to increased tax burdens and reduced profit margins.